CFTC Division of Enforcement to Refocus on Fraud and Helping Victims, Stop Regulation by Enforcement
WASHINGTON, D. C. — Commodity Futures Trading Commission Acting
Chairman Caroline D. Pham today announced a reorganization of the
Division of Enforcement’s task forces to combat fraud and help victims
while ending the practice of regulation by enforcement.
“The
CFTC is strengthening its enforcement program to focus on victims of
fraud, as well as remaining vigilant for other violations of law. This
simplified structure will stop regulation by enforcement and is more
efficient. These much-needed changes will maximize the CFTC’s
resources to bring more actions to pursue fraudsters and other bad
actors, and not punish good citizens. I commend the Division of
Enforcement for upholding the CFTC’s mission to protect the American
public. ”
“Fraudsters are constantly evolving their tactics to
exploit market participants and undermine the rules that provide the
foundation for a vibrant, resilient and innovation-forward
marketplace,” said Brian Young, CFTC Acting Director of Enforcement.
“This taskforce realignment will enhance our vigorous and energetic
enforcement program by empowering our talented staff to focus their
expertise on matters that secure justice for victims and uphold public
confidence in the integrity of our markets. ”
Previous task
forces will be simplified into two new Division of Enforcement task
forces: the Complex Fraud Task Force and the Retail Fraud and General
Enforcement Task Force.
The Complex Fraud Task Force will be
responsible for all preliminary inquiries, investigations, and
litigations relating to complex fraud and manipulation across all
asset classes. The Acting Chief will be Deputy Director Paul Hayeck.
The Retail Fraud and General Enforcement Task Force will focus
on retail fraud and handle general enforcement matters involving other
violations of the Commodity Exchange Act. The Acting Chief will be
Deputy Director Charles Marvine.
The new structure will better
leverage staff expertise to more efficiently utilize the CFTC’s
resources to prevent fraud, manipulation, and abuse and ensure market
integrity. It also provides enhanced governance and oversight of
enforcement matters to prevent overreach and enhance consistency,
fairness, and due process.
You can report suspicious
activities or information, such as possible violations of commodity
trading laws, to the CFTC Division of Enforcement via a Toll-Free
Hotline 866-FON-CFTC (866-366-2382) or file a tip or complaint online.