The CFTC filed a civil enforcement action ("Complaint") in the U.S. District Court for the Southern District of New York against an employee of a proprietary trading financial services firm. The Complaint alleged that the employee willfully filed false reports concerning commodity futures contracts purchased for the employer's account, in an effort to indicate that a number of positions had opened or closed when they had not.
According to the Complaint, the employee (i) knowingly made multiple manual false entries in the firm's computerized trading records concerning purchases of light sweet crude oil futures contracts, and (ii) was aware that making such false entries was illegal. The CFTC "seeks civil monetary penalties, restitution, permanent registration and trading bans, and a permanent injunction from future violations of the CEA."
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