CFTC Orders Trafigura to Pay $55 Million for Fraud, Manipulation and Impeding Communications with the CFTC

(make $billions is profit and pay $millions is fines-there is not enough space to go into the depths of the malfeasances this company has done and profited handsomely from-the famous last minute pardon (of Marc Rich) by Bubba as he was out the door said it all)

The Commodity Futures Trading Commission today issued an order simultaneously filing and settling charges against Trafigura Trading LLC, a global commodities merchant with its principal place of business in Houston, Texas, for multiple violations of the Commodity Exchange Act (CEA) and associated CFTC regulations. The order requires Trafigura to pay a $55 million civil monetary penalty and implement certain remedial measures to ensure future compliance with the CEA.

The order includes three violations:  

• Between 2014 and 2019, Trafigura traded gasoline while in knowing possession of material nonpublic information it knew or should have known had been misappropriated from a Mexican trading entity (MTE).
 

• In February 2017, Trafigura manipulated a fuel oil benchmark to benefit its futures and swaps positions, including derivatives traded on United States registered entities.
 

• Between 2017 and 2020, Trafigura required current employees and former employees to sign employment and/or separation agreements containing non-disclosure provisions prohibiting them from disclosing company information, with no exception for law enforcement agencies or regulators, which illegally impeded individuals from voluntarily communicating with Division of Enforcement (DOE) staff during the investigation.

“As reflected in today’s Order, Trafigura misappropriated material non-public information and engaged in manipulative conduct that affected published benchmark rates,” said Director of Enforcement Ian McGinley.  “This enforcement action is yet another example of the CFTC’s commitment to ensuring the derivatives markets remain free from trading abuses that undermine their integrity.”

Director of the Whistleblower Office Brian Young commented, “This is the first CFTC action charging a company for interfering with whistleblower communications. This groundbreaking action demonstrates the CFTC’s commitment to protecting potential whistleblowers and puts the market on notice that the CFTC will not tolerate attempts to silence potential witnesses.” 

https://www.cftc.gov/PressRoom/PressReleases/8921-24

Bill Clinton’s Last Outrage; The President’s Defenders Feel Betrayed by His Pardon of Marc Rich

https://www.brookings.edu/articles/bill-clintons-last-outrage-the-presidents-defenders-feel-betrayed-by-his-pardon-of-marc-rich/

Trafigura: the 10-day unravelling of an alleged $500mn fraud

https://www.ft.com/content/57396c6f-a14b-4547-a29c-998695ecbb54

From 2022

CFTC Orders Glencore to Pay $1.186 Billion for Manipulation and Corruption

https://www.cftc.gov/PressRoom/PressReleases/8534-22

On the nickel squeeze

Metal mystery: The inside story of a bizarre $856m scandal

https://www.smh.com.au/business/markets/metal-mystery-the-inside-story-of-a-bizarre-856m-scandal-20230228-p5co3f.html