Committing A Crime In The Commodities Exchanges

People frequently think that those who commit white collar crimes are not really doing anybody any harm. They make this wrong assumption because they don’t make the connection between someone doing something in a financial transaction and other parties getting harmed by that at the other end of the transaction. It is difficult to see the linkage. But it really is there.

What Are Commodities Charges?

Simply put, a commodities crime charge is when someone attempts to buy or sell a commodity through illegal means. This may mean that they have obtained the commodity through theft or deception. It may also mean that they are attempting to sell the commodity outside of the normal functions of the marketplace. One final situation may be when an individual attempts to sell a commodity with insider information which they ought not be in possession of.

A commodities crime is a very serious offense with potentially life-altering penalties attached to it. It is certainly something to take incredibly seriously.

DEFENSE TEAM SPOTLIGHT

Todd Spodek

Lead Attorney & Founder

Featured on Netflix's "Inventing Anna," Todd Spodek brings decades of high-stakes criminal defense experience. His aggressive approach has secured dismissals and acquittals in cases others deemed unwinnable.

NY Bar Admitted Multi-State Licensed Federal Courts

Meet the Full Team

Legal Scenario: What Would You Do?

Scenario

You work as a commodities trader and recently discovered that a colleague has been manipulating soybean futures prices by placing large buy orders with no intention of executing them, a practice known as spoofing. Your firm's compliance department is now investigating, and regulators have started asking questions about trades made on your shared desk.

Could I face criminal charges even though I wasn't the one placing the fraudulent orders on the commodities exchange?

Attorney's Answer

Under the Commodity Exchange Act (CEA), particularly 7 U.S.C. § 13(a), anyone who willfully aids, abets, or assists in violations of commodities trading laws can face the same penalties as the primary offender. Prosecutors and the CFTC often cast a wide net in commodities fraud investigations, and simply being aware of manipulative trading activity on your desk without reporting it could be construed as participation. Penalties for commodities fraud can include up to 25 years in prison and fines up to $25 million under the Dodd-Frank Act's enhanced enforcement provisions. You need to retain experienced defense counsel immediately and avoid making any statements to investigators or compliance officers until your attorney can assess your exposure and negotiate any cooperation terms.

This is general information only. Contact us for advice specific to your situation.

Who Charges A Person With A Commodities Charge?