monetary sanctions Archives - The Industry Spread

Federal Court Orders Florida Company to Pay More Than $15 Million in Monetary Sanctions for Fraud and Illegal Transactions

November 5, 2019

The U.S. Commodity Futures Trading Commission today announced that the U.S. District Court for the Southern District of Florida entered a default judgment against defendants Aviv Michael Hen of New York, and Omega Knight 2, LLC, as well as a consent order against Erez Hen of Florida, for fraud and illegal, off-exchange precious metals transactions and failing to register with the CFTC.

SEC Awards $3 Million to Joint Whistleblowers

June 7, 2019

The Securities and Exchange Commission today announced an award of $3 million to whistleblowers whose tip launched the SEC’s investigation and subsequent successful enforcement action involving an alleged securities law violation that impacted retail investors. The whistleblowers submitted their tip jointly to the Commission and will share the award.  In this case, the whistleblowers also undertook significant and timely steps to have their employer remediate the harm caused by the alleged violations.

In CFTC Action, Federal Court Orders Precious Metals Firm and its Principal to Pay More than $3.6 million in Monetary Sanctions for Precious Metals Fraud and Misappropriation

March 21, 2019

The Commodity Futures Trading Commission (CFTC) announced today that a federal court in Florida has entered an Order of Final Judgment by Default (Final Judgment Order) and an Order Granting Motion for Final Default Judgment (collectively, Orders), against Betty Lea Grimes (Grimes)of Boca Raton, Florida, and the precious metals firm she founded, Mark Olsen Mining Company (MOMC) (collectively, defendants).  The Final Judgment Order requires the defendants to pay $2,723,460 in civil monetary penalties and $907,820 in disgorgement to customers.  The Final Judgment Order also permanently bars them from trading in CFTC regulated markets, as well as seeking registration with the CFTC.

CFTC Announces Whistleblower Award Totaling More Than $2 Million

March 8, 2019

The Commodity Futures Trading Commission (CFTC) today announced a whistleblower award totaling more than $2 million to be paid to an individual whistleblower. The CFTC granted the whistleblower’s award application for both a CFTC action and a related action brought by another federal regulator. In ordering the award, the CFTC recognizes the contribution of a whistleblower in providing critical information through independent analysis of market data. 

In CFTC Action, Former Trader Krishna Mohan Admits to Engaging in Spoofing and Manipulative Scheme at a Proprietary Trading Firm

March 5, 2019

The Commodity Futures Trading Commission (CFTC) today issued an Order filing and settling charges against Krishna Mohan (Mohan), in which Mohan admits to engaging in manipulative and deceptive schemes, along with other individuals, which involved thousands of acts of spoofing (bidding or offering with the intent to cancel the bid or offer before execution) in a variety of futures contracts traded on the Chicago Mercantile Exchange and Chicago Board of Trade. The Order finds that Mohan engaged in this unlawful activity while trading for his former employer, a proprietary trading firm named as “Firm A” in the Order.    

SEC Awards More Than $54 Million to Two Whistleblowers

September 9, 2018

The Securities and Exchange Commission is awarding $39 million to one whistleblower and $15 million to another whose critical information and continued assistance helped the agency bring an important enforcement action.