Compliance & Ethics

The Commodity Futures Trading Commission (CFTC) has imposed a $48 million civil penalty on TOTSA TotalEnergies Trading SA (TOTSA), a major Swiss energy trader, for attempting to manipulate the market for EBOB-linked futures contracts. This case serves as a critical reminder for compliance professionals across the industry of the vital role they play in safeguarding market integrity and preventing unlawful practices.

The U.S. Securities and Exchange Commission (SEC) has announced fraud charges against a China-based investment adviser, its U.S.-based holding company, and their CEO. The case, involving alleged deception of hundreds of investors and misappropriation of at least $6 million, underscores the risks faced by investors in the complex world of pre-IPO investments and international finance.

Austal USA LLC, a prominent shipbuilder based in Mobile, Alabama, has pleaded guilty to a multimillion-dollar financial accounting fraud scheme and obstruction of a Defense Department audit. Concurrently, the Securities and Exchange Commission (SEC) has announced charges against Austal USA and its Australia-based parent company, Austal Limited, for conducting a fraudulent revenue recognition scheme.

The Commodity Futures Trading Commission (CFTC) has taken action against The Bank of New York Mellon (BNYM), imposing a $5 million civil monetary penalty for repeated failures in swap transaction reporting and supervision of its swap dealer business. The order, issued on August 26, 2024, addresses violations of a prior CFTC order and failures to comply with the Commodity Exchange Act (CEA) and CFTC regulations.

The Securities and Exchange Commission (SEC) has levied a $1.8 million fine against Sound Point Capital Management LP. The New York-based investment adviser settled charges on August 26, 2024, related to inadequate policies for handling material nonpublic information (MNPI) in its collateralized loan obligation (CLO) trading operations.

The City of Los Angeles has agreed to pay $38.2 million to settle allegations of misusing Department of Housing and Urban Development (HUD) grant funds. The settlement, announced on August 26, 2024, resolves claims that the city knowingly violated federal accessibility requirements in its affordable housing projects over a period of more than a decade.

In a follow-up to last week's headline-grabbing $98 million whistleblower award, the Securities and Exchange Commission (SEC) has announced another significant payout, this time totaling $24 million to two whistleblowers who provided crucial information about overseas misconduct.