A Look At The CFTC Enforcement Action Against Freepoint
In recent years, a few Foreign Corrupt Practices Act enforcement actions have also resulted in parallel matters against the same company by the Commodities Futures Trading Commission (CFTC) for fraud and/or other manipulative conduct. (See here for the CFTC enforcement action against Vitol (based on the same general conduct alleged in the related FCPA enforcement action) and here for the CFTC enforcement action against Glencore (based on the same general conduct alleged in the related FCPA enforcement action).
The latest example occurred last week as the CFTC – in connection with an FCPA enforcement action against Freepoint Commodities – also brought an enforcement action against Freepoint.
In summary fashion, this CFTC order states:
CFTC Commissioner Once Again Unleashes On The CFTC
This prior post highlighted how Commodities Futures Trading Commission (CFTC) Commissioner Caroline Pham (pictured) unleased on a CFTC enforcement action based on record keeping issues during the height of COVID.
In short, Pham called the CFTC’s enforcement action “wrong” and “callous.”
In this recent statement, Commissioner Pham once again unleased on the CFTC.
The issues concerned, in part, the so-called deliberative process privilege – a form of executive privilege that protects information from disclosure to third parties if the information involves the process by which a government agency reached a particular decision or developed a specific policy.
The CFTC’s Bribery Related Enforcement Action Against Glencore
In 2019, the U.S. Commodity Futures Trading Commission (CFTC) issued an enforcement advisory concerning companies and individuals “that timely and voluntarily disclose to the Division violations of the Commodity Exchange Act involving foreign corrupt practices, where the voluntary disclosure is followed by full cooperation and appropriate remediation.” (See here).
Some claimed that the CFTC was going to begin investigating and prosecuting Foreign Corrupt Practices Act violations. This was false as the CFTC advisory clearly concerned violations of the Commodity Exchange Act.
Shortly thereafter, Glencore disclosed that the “CFTC is investigating whether Glencore and its subsidiaries may have violated certain provisions of the Commodity Exchange Act and/or CFTC Regulations through corrupt practices in connection with commodities.”
A Closer Look At The CFTC’s Enforcement Action Against Vitol
As highlighted in this previous post, in early 2019 the Commodity Futures Trading Commission (CFTC) issued this enforcement advisory concerning companies and individuals “that timely and voluntarily disclose to the Division violations of the Commodity Exchange Act (CEA) involving foreign corrupt practices, where the voluntary disclosure is followed by full cooperation and appropriate remediation.”
Certain sources, including the FCPA Blog, falsely claimed that the CFTC would now be investigating and prosecuting FCPA violations. However, the CFTC advisory clearly concerned violations of the CEA. (See here for a recent FCPA Flash podcast on the topic).
Recently, in connection with the actual FCPA enforcement action against Vitol, the CFTC also brought an enforcement action against the company for its “fraudulent and manipulative conduct – including conduct relating to foreign corruption.” As stated in the CFTC’s release “this is the first action brought by the CFTC involving foreign corruption” and this post takes a closer look at the CFTC enforcement action.
Friday Roundup
Seeking whistleblowers, scrutiny alert, and across the pond. It’s all here in the Friday roundup.
Seeking Whistleblowers
As highlighted in this previous post, a few months ago the Commodity Futures Trading Commission issued this enforcement advisory concerning companies and individuals “that timely and voluntarily disclose to the Division violations of the Commodity Exchange Act (CEA) involving foreign corrupt practices, where the voluntary disclosure is followed by full cooperation and appropriate remediation.”
Certain sources, including the FCPA Blog, falsely claimed that the CFTC is now investigating and prosecuting FCPA violations; however the CFTC advisory clearly concerns violations of the CEA. (See here for a recent FCPA Flash podcast on the topic).