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CFTC Defense Lawyers

The Spodek Law Group handles CFTC investigations, and enforcement actions, throughout the USA. Our firm is led by Todd Spodek, a second generation criminal defense attorney.

The US CFTC Division of Enforcement is tasked with investigating and prosecuting alleged violations which violate the Commodity Exchange Act, and CFTC regulations. If you’re accused of a CFTC offense, it’s important you hire a law firm who can help. Spodek Law Group can handle all aspects of a CFTC investigation, ranging from informal inquiries, to formal investigations, enforcement actions, and more.

We can work closely with your in-house legal team in order to achieve your objective and avoid prosecution. It’s essential that at the outset of any commodities investigation or action you create a sound strategy which will lead to a speedy resolution. In some cases it can be beneficial to work with the government. In other cases, taking a defensive posture is prudent. It’s our job to help you understand which approach is beneficial.

With the Dodd-Frank amendment, the CFTC was granted more authority. As a result, the CFTC has shown increased aggressiveness in its investigations of commodity market trading patterns. The leveraged precious metals brokerage business, and other related bad credit business loans sector, has become the focus of the CFTC and other regulators.

We understand what’s at stake in a CFTC investigation. If you have questions, we encourage you to contact us to get a risk free consultation today.

What is the CFTC?

The CFTC is an independent US agency established by the CFTC Act of 1974. It regulates commodity futures and options. Its goal is to help increase competitive markets, and efficient future markets.

  • Their goal is to protect investors against manipulation
  • Protect investors from abusive trade practices
  • Protect investors from abuse

The CFTC has five committees, each headed by a commissioner whose appointed by the president and approved by the Senate. The five committees focus on a number of issues like: agriculture, global markets, energy, environmental markets, technology, and also cooperation between the CFTC and SEC. The committees consist if people who represent the interests of industries, traders, consumers, etc.

In recent years the CFTC is moving away from focusing on traditional commodity products, and shifting to new challenges in the 21st century. Most recently, it’s focused on Fintech products such as Bitcoin. In 2017, Bitcoin futures contracts launched. The CFTC says that FinTech is driving innovation in financial markets across the world. New technologies such as AI, cloud computing, and machine learning, have resulted in many challenges for the CFTC. But, still, the CFTC retains and plays an important role in regulating financial markets.

What does the CFTC do?

The CFTC’s goal is to stop market manipulation and manipulative schemes. The CFTC is capable of correcting problems in the market caused by violators, and to remove actors causing them. The CFTC has the power to pass out penalties for violations of the Commodity Exchange Act, and other regulations.

Examples include fines, bans, and even criminal penalties. These can be against registered firms and even traders. The CFTC can pursue this for things like ponzi schemes, manipulative commodities schemes, and more.

In a recent article in the WSJ, it was noted that the CFTC has been relying more heavily on coordination with criminal prosecutors, which has resulted in a record high number of criminal charges being filed.

Whistleblowers could trigger an investigation into your operation

Whistleblowers often begin CFTC investigations into companies who may be violating CFTC rules and regulations. Although SEC and qui tam are some of the more well known whistleblower programs, there are many other programs that exist as well. The CFTC whistleblower program awards those who provide information regarding a violation of the Commodity Exchange Act, if it leads to more than $1 million in penalty fines.

Below are examples of various CFTC issues we can assist with

CFTC Defense Lawyers

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