Washington, D.C. — The Commodity Futures Trading Commission today filed a civil enforcement action in the U.S. District Court for the Eastern District of New York against defendants Craig L. Clavin and his company Lighthouse Futures, Ltd., both of New York. The complaint charges the defendants with fraudulent solicitation of commodity pool participants, misappropriation of pool funds, commingling pool funds with other funds, and failing to register with the CFTC as a commodity pool operator, as required.

According to the complaint, from at least 2015 until 2019, the defendants fraudulently solicited and misappropriated at least $345,000 from U.S. residents for pooled investments in commodity futures contracts. The defendants, however, failed to trade the vast majority of pool participants’ funds as promised, misappropriated most of their money, and concealed their fraud by sending false performance reports and account statements to pool participants.

As...

Washington, D.C. — The Commodity Futures Trading Commission today filed a complaint in the U.S. District Court for the Northern District of Georgia against Silver Star FX, LLC d/b/a Silver Star Live (SSL), a former New Mexico limited liability company, Silver Star Live Software LLC (SSLS), a Florida limited liability company, and David Wayne Mayer of Roswell, Georgia. The complaint charges all three defendants with sales solicitation fraud and failing to register with the CFTC.

The complaint alleges that from at least July 2018 to March 2019, the defendants fraudulently solicited customers to open discretionary trading accounts and offered to trade those accounts through a fully automated retail foreign currency (forex) trading software system that Mayer created. Mayer used the pseudonym “Quicksilver” to act as an unregistered associated person and to solicit clients through videos posted online, on social media, and at in-person marketing events. The solicitations...

Washington, D.C. — The Commodity Futures Trading Commission today filed a civil enforcement action against Erik J. Hass and his company Simply Gains Inc., both of Junction City, Oregon, in the United States District Court for the District of Oregon, charging them with fraud, misappropriation, and failing to register with the CFTC as required.

The complaint charges that the defendants solicited at least $2.1 million from at least 21 individuals to fund their foreign currency (forex) commodity pool operation. Despite assurances that depositors could not lose more than 20% of the funds they deposited, the defendants lost over $1 million trading forex and misappropriated at least $415,000 more to spend on Hass’s mortgage, credit card debt, and a Caribbean cruise.

The complaint also alleges that the defendants fraudulently solicited prospective pool participants by misleading them about Hass’s experience, expertise, and investment track record while promising...

A derivatives clearing organization (DCO) is an entity that enables each party to an agreement, contract, or transaction to substitute, through novation or otherwise, the credit of the DCO for the credit of the parties; arranges or provides, on a multilateral basis, for the settlement or netting of obligations; or otherwise provides clearing services or arrangements that mutualize or transfer credit risk among participants.

A DCO that seeks to provide clearing services with respect to futures contracts, options on futures contracts, or swaps must register with the CFTC before it can begin providing such services.  The Commission may exempt a DCO from registration for the clearing of swaps if the Commission determines that such DCO is subject to comparable, comprehensive supervision by appropriate government authorities in the DCO’s home country.

Criteria To obtain and maintain registration, a DCO must comply with the DCO core principles established in...

A derivatives clearing organization (DCO) is an entity that enables each party to an agreement, contract, or transaction to substitute, through novation or otherwise, the credit of the DCO for the credit of the parties; arranges or provides, on a multilateral basis, for the settlement or netting of obligations; or otherwise provides clearing services or arrangements that mutualize or transfer credit risk among participants.

A DCO that seeks to provide clearing services with respect to futures contracts, options on futures contracts, or swaps must register with the CFTC before it can begin providing such services.  The Commission may exempt a DCO from registration for the clearing of swaps if the Commission determines that such DCO is subject to comparable, comprehensive supervision by appropriate government authorities in the DCO’s home country.

Criteria To obtain and maintain registration, a DCO must comply with the DCO core principles established in...

“We can get your money back.”

If fraud criminals recently stole a portion of your savings or retirement nest egg, an offer to recover your funds may sound appealing. Unfortunately, for many victims of fraud, the offer may be another scheme that adds insult to injury.

Recovery scams target victims already harmed by other frauds. Fraudsters convince victims they can get their lost money back, but first the victims have to pay upfront fees.

If you’ve been a recent victim of fraud, be prepared to guard against these follow-on schemes.

Washington, D.C. — On Tuesday, June 9, 2020, the International Organization of Securities Commissions (IOSCO) announced the election and immediate appointment of CFTC Chairman Heath P. Tarbert as IOSCO Board Vice Chair for the term 2020-2022. Chairman Tarbert is the first CFTC Chairman to be elected to join the leadership of the IOSCO Board since the international standard setting body was established in 1983.

“At the CFTC, we strive each day to be the global standard for sound derivatives regulation,” said Chairman Tarbert. “I am honored to serve as Vice Chair on IOSCO’s Board, and I look forward to working with my counterparts to foster international cooperation and further IOSCO’s important work of promoting financial stability, market integrity, and investor protection.”

Since first becoming an associate member of IOSCO in 1988, and then subsequently an ordinary member in 2013, the CFTC has been an active participant in the international body.

About...

Washington, D.C. — The Commodity Futures Trading Commission today announced it has extended through September 30, 2020, certain elements of the no-action relief issued in response to the COVID-19 (coronavirus) pandemic that was set to expire on June 30, 2020. On March 17, 2020, the CFTC’s Division of Swap Dealer and Intermediary Oversight (DSIO) and Division of Market Oversight (DMO) granted targeted, temporary relief to a broad spectrum of market participants to support orderly trading and liquidity as they implemented social distancing measures.

“This time-limited extension recognizes the reality that work-from-home arrangements are likely going to be commonplace for the foreseeable future,” said DSIO Director Joshua Sterling and DMO Director Dorothy DeWitt. “During this extended period, however, we expect that registrants will take the necessary steps to come into full compliance with CFTC regulations, such as those related to voice recordings and time-stamps.”

A derivatives clearing organization (DCO) is an entity that enables each party to an agreement, contract, or transaction to substitute, through novation or otherwise, the credit of the DCO for the credit of the parties; arranges or provides, on a multilateral basis, for the settlement or netting of obligations; or otherwise provides clearing services or arrangements that mutualize or transfer credit risk among participants.

A DCO that seeks to provide clearing services with respect to futures contracts, options on futures contracts, or swaps must register with the CFTC before it can begin providing such services.  The Commission may exempt a DCO from registration for the clearing of swaps if the Commission determines that such DCO is subject to comparable, comprehensive supervision by appropriate government authorities in the DCO’s home country.

Criteria To obtain and maintain registration, a DCO must comply with the DCO core principles established in...

“We can get your money back.”

If fraud criminals recently stole a portion of your savings or retirement nest egg, an offer to recover your funds may sound appealing. Unfortunately, for many victims of fraud, the offer may be another scheme that adds insult to injury.

Recovery scams target victims already harmed by other frauds. Fraudsters convince victims they can get their lost money back, but first the victims have to pay upfront fees.

If you’ve been a recent victim of fraud, be prepared to guard against these follow-on schemes.

 Washington, D.C. — The Commodity Futures Trading Commission today announced it will award more than $6 million to a whistleblower who voluntarily provided original information that led the CFTC to bring a successful enforcement action. The CFTC opened its investigation upon receiving the whistleblower’s information, which was specific, credible and timely. With this award, the CFTC has now granted over $110 million in whistleblower awards since issuing its first award in 2014. 

“This award — together with the many that have preceded it — shows that in its short history, the Commission’s Whistleblower Program has significantly strengthened our enforcement program,” said CFTC Director of Enforcement James McDonald. “The contribution that whistleblowers have made cannot be overstated. To use just one data point, whistleblowers have led the CFTC to obtain nearly $900 million in monetary relief.  We are very grateful for the value that whistleblowers...

A derivatives clearing organization (DCO) is an entity that enables each party to an agreement, contract, or transaction to substitute, through novation or otherwise, the credit of the DCO for the credit of the parties; arranges or provides, on a multilateral basis, for the settlement or netting of obligations; or otherwise provides clearing services or arrangements that mutualize or transfer credit risk among participants.

A DCO that seeks to provide clearing services with respect to futures contracts, options on futures contracts, or swaps must register with the CFTC before it can begin providing such services.  The Commission may exempt a DCO from registration for the clearing of swaps if the Commission determines that such DCO is subject to comparable, comprehensive supervision by appropriate government authorities in the DCO’s home country.

Criteria To obtain and maintain registration, a DCO must comply with the DCO core principles established in...

“We can get your money back.”

If fraud criminals recently stole a portion of your savings or retirement nest egg, an offer to recover your funds may sound appealing. Unfortunately, for many victims of fraud, the offer may be another scheme that adds insult to injury.

Recovery scams target victims already harmed by other frauds. Fraudsters convince victims they can get their lost money back, but first the victims have to pay upfront fees.

If you’ve been a recent victim of fraud, be prepared to guard against these follow-on schemes.

Washington, D.C. — The Commodity Futures Trading Commission today issued an order filing and settling charges against Gain Capital UK Limited (Gain UK) of London, England for failing to register as a retail foreign exchange dealer (RFED) and for supervision violations related to the handling of a customer account managed by an unregistered commodity trading advisor (CTA). The order requires Gain UK to pay a $250,000 civil monetary penalty, to disgorge $241,671, and to cease and desist from any further violations of the Commodity Exchange Act (CEA) or CFTC regulations, as charged.      

The order finds that from at least February 6, 2014 to March 8, 2019, Gain UK acted as a counterparty to retail foreign exchange (forex) customers who were located in the United States, without registering as an RFED as required by the CEA and CFTC regulations. Gain UK accepted customers who used U.S. mailing addresses in account applications and provided...

List of Foreign Entities That Have Been Identified as Acting in a Capacity That Appears to Require Registration but Are Not Appropriately Registered With the Commission

The CFTC frequently receives investigative leads and questions from the public about foreign entities that solicit and/or accept funds from U.S. residents at a retail level. For example these leads and questions can relate to, among other things, foreign entities that engage in foreign currency (“Forex”) in a capacity similar to Retail Foreign Exchange Dealers (“RFEDs”), Introducing Brokers, Commodity Trading Advisors or Commodity Pool Operators and binary options. Many of these foreign entities are acting in a capacity that requires them to be registered with the CFTC.

If a foreign entity is registered with the commission, then it is subject to CFTC regulations and oversight that apply to registrants. Generally, foreign entities that solicit you to trade are required to...

The Commodity Futures Trading Commission’s (CFTC) Office of Consumer Outreach and the Securities & Exchange Commission’s Office of Investor Education and Advocacy are issuing this Investor Alert to warn about fraudulent schemes involving binary options and their trading platforms. These schemes allegedly include refusing to credit customer accounts, denying fund reimbursement, identity theft, and manipulation of software to generate losing trades.

Washington, D.C. — The Commodity Futures Trading Commission at its open meeting today unanimously approved a final rule prohibiting persons from seeking to claim a Commodity Pool Operator (CPO) registration exemption who have, or whose principals have, incurred any of the relevant statutory disqualifications listed in the Commodity Exchange Act (CEA).

Final Rule: Amendments to Registration and Compliance Requirements for Commodity Pool Operators and Commodity Trading Advisors: Prohibiting Exemptions under Regulation 4.13 on Behalf of Persons Subject to Certain Statutory Disqualifications

The Commission unanimously approved a final rule amendment to Regulation 4.13 in 17 CFR part 4, which contains the regulations applicable to commodity pool operators (CPOs) and commodity trading advisors. The Final Rule generally prohibits persons who have, or whose principals have, in their backgrounds any of the statutory disqualifications listed in section 8a(2) of the CEA...

Recent market volatility due to the COVID-19 (coronavirus) pandemic has prompted many investors to purchase shares of trading vehicles that use futures contracts or other commodity interests, either in hopes of profiting from a recovery in particular commodity prices or as a means of diversifying their portfolios. These trading vehicles may be organized as exchange-traded products (ETPs) or mutual funds, but that does not necessarily mean they will behave like traditional exchange-traded funds (ETFs) or mutual funds that invest in stocks, bonds or other asset classes.  For example, these vehicles might not provide investors opportunities to “buy the dip” or profit from long-term price gains in the underlying commodity.