Results of CFTC's Division of Enforcement: 82 Enforcement Actions and $1.7 Billion in Fines (with Lofchie Comment)
The CFTC has announced that it filed 82 enforcement actions in fiscal year ("FY") 2013, bringing the total over the past three fiscal years to 283 - nearly double the number of actions brought during the prior three fiscal years. The Division of Enforcement ("Division") also imposed more than $1.7 billion in sanctions, including orders for more than $1.5 billion in civil monetary penalties and more than $200 million in restitution and disgorgement.
The Division noted, however, that the total number of actions is down compared to FY 2012.
The CFTC details the following as enforcement highlights for FY 2013:
- LIBOR and Other Interest Rate Benchmarks
- Protection of Customer Funds (MF Global, Peregrine and Others)
- Other Manipulation and Trading Violations; Pre- and Post-Dodd-Frank Authority
- Designated Contract Market Violations
- Futures Commission Merchant and Introducing Broker Supervision Violations
- False Statements under Dodd-Frank
- Precious Metals Fraud Charges under Dodd-Frank
- Ponzi Fraud - Trial Victory
- "Prediction Market" Off-Exchange Options Trading
- Cooperation with Law Enforcement Partners
Lofchie Comment: It is difficult to reconcile the collection of $1.7 billion in fines with assertions from the CFTC that it has insufficient power to impose fines.
See: CFTC Press Release.