CFTC Steps Up Enforcement of False Statement Authority


CFTC Steps Up Enforcement of False Statement Authority

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Futures & Derivatives Law Report 

The Commission’s authority under amended Section 6(c)(2) is expansive, and already has proven effective in extracting settlements from respondents who prefer not to test its breadth in court. These enforcement actions demonstrate that there is virtually no room for a witness to make a mistake when providing information to the Commission, whether under oath or informally.

In Part I of our article we discuss the Commission’s new Section 6(c)(2) statutory authority. Part II summarizes the Commission’s enforcement actions under that section. Part III discusses the possible defenses to a false statement charge. Finally, in Part IV we highlight several issues arising from Section 6(c)(2) with which attorneys must be aware in every matter before the Commission, including the ethical implications of the new law and its enforcement.

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