Video Series

“At the Crossroads: CFTC and DOJ Enforcement” is a weekly video series hosted by Mayer Brown partners Matt Kluchenek and Glen Kopp. 

Each episode, they discuss a topic at the intersection of enforcement by the Commodity Futures Trading Commission (CFTC) and the Department of Justice (DOJ). The goal: to help legal and compliance departments protect their organizations in an increasingly rigorous regulatory environment.

Episode 1: Insider Trading in the Commodities/Derivatives Markets
Episode 2: Joint vs. Parallel Investigations
Episode 3: The 5th Amendment and SRO Proceedings
Episode 4: The CFTC’s Foray into Foreign Corruption
Episode 5: Jurisdictional Limits
Episode 6: Cryptocurrency
Episode 7: Cross-Border Realities
Episode 8: Extradition
Episode 9: Cooperation with CFTC
Episode 10: Cooperation with DOJ
Episode 11: Corporate Cooperation with DOJ
Episode 12: Sentencing in Spoofing Cases
Episode 13: Remediation Requirement
Episode 14: Spoofing and Disruptive Trading Practices - Overview
Episode 15: SRO Spoofing Enforcement
Episode 16: CFTC Spoofing Enforcement


 

Episode 1: Insider Trading in the Commodities/Derivatives Markets

In the first episode, Matt and Glen explore recent enforcement activities by the CFTC and DOJ and how market participants can protect themselves. 

 

Episode 2: Joint vs. Parallel Investigations

Matt and Glen discuss a recent decision and explore the differences between “joint” vs. “parallel” investigations and the implications for defendants and their employers, as well as for the agencies.

  

 

Episode 3: The 5th Amendment and SRO Proceedings

Can the 5th amendment protection be applied in self-regulatory organization (SRO) proceedings? In this week’s episode, Mayer Brown partners Matt Kluchenek and Glen Kopp answer this question and discuss what to do if an SRO requests testimony for an investigation regarding an alleged rule violation.  

 

 

Episode 4: The CFTC’s Foray into Foreign Corruption

Prosecution and enforcement of the Foreign Corruption Practices Act have been a major focus for the US Government in recent years. In March 2019, the CFTC announced that they will start bringing action against foreign corrupt practices, partnering closely with the DOJ. In this week’s episode, Matt and Glen discuss CFTC’s involvement as a new player in foreign corruption investigations and what companies should keep in mind to avoid corruption concerns when dealing with commodities and derivatives trading.

 

 

Episode 5: Jurisdictional Limits

In this week’s episode, Matt and Glen explore jurisdictional limits to the global enforcement efforts of the CFTC and DOJ. They discuss a recent case in the Second Circuit and the implications of the decision for foreign companies and individuals.

 

 

Episode 6: Cryptocurrency

In this week’s episode, Matt and Glen discuss how the CFTC and DOJ view cryptocurrency and their approach in enforcement. They explore case types that the two agencies have brought in the last few years and what we expect to continue to see in CFTC and DOJ enforcement. 

 

 

Episode 7: Cross-Border Realities

In this week’s episode, Matt and Glen examine some of the tools that the CFTC and the DOJ have at their disposal to pursue cross-border cases. They discuss how the CFTC and DOJ are using these tools in overlapping cases and their implications in global investigations. 

 

 

Episode 8: Extradition

Matt and Glen delve into extradition in the context of CFTC and DOJ investigations. They provide an overview of extradition, including relevancy and considerations to keep in mind for challenging extradition.

  

 

Episode 9: Cooperation with CFTC

Over the next few weeks, Matt and Glen will take a look at what it means for individuals and entities to cooperate with the CFTC and the DOJ in connection with regulatory and enforcement investigations. This week’s episode explores cooperation with the CFTC. Matt unpacks CFTC advisories on cooperation and self-reporting and shares what to keep in mind for CFTC enforcement investigations.

  

 

Episode 10: Cooperation with DOJ

Last week, Mayer Brown partners Matt Kluchenek and Glen Kopp took a closer look at cooperation with the Commodity Futures Trading Commission (CFTC). In this week’s episode, Glen and Matt examine what it means for individuals to cooperate with the Department of Justice (DOJ) in an investigation and share some key takeaways for engagement with DOJ. 

  

 

Episode 11: Corporate Cooperation with DOJ

Last week, Matt Kluchenek and Glen Kopp explored individual cooperation with the DOJ in an investigation. In this week’s episode, they address corporate cooperation with the DOJ and the Corporate Enforcement Policy (CEP). The CEP provides a presumption that the DOJ will decline to prosecute a corporation when the corporation has met three elements: (i) voluntary self-disclosure; (ii) full cooperation; and (iii) remediation. Matt and Glen discuss the first two elements of the CEP this week. In a future episode, they will cover the all-important remediation requirement.

  

 

Episode 12: Sentencing in Spoofing Cases

In this week’s episode, Matt Kluchenek and Glen Kopp discuss sentencings in white collar cases. They specifically address commodities fraud and spoofing cases involving cooperators who have assisted the government and how cooperator sentences compare to those for defendants who are sentenced following a trial conviction. They share their insights on the approach of the Department of Justice (DOJ) in these cases and how defense attorneys advocate for clients at sentencing in fraud cases.

 

 

Episode 13: Remediation Requirement

In this week’s episode, Mayer Brown partners Matt Kluchenek and Glen Kopp continue their conversation on the role of cooperation with the Department of Justice (DOJ) and Commodity Futures Trading Commission (CFTC).  In particular, they delve into the importance of remediation efforts in connection with the cooperation process.  As they discuss, remediation can take many forms, but needs to be part of the calculus if meaningful cooperation credit is to be expected. 

 

 

Episode 14: Spoofing and Disruptive Trading Practices – Overview

Over the next several episodes, Matt Kluchenek and Glen Kopp will focus on disruptive trading practices, including spoofing. This week, they provide an overview of the disruptive trading and spoofing prohibitions, and examine paradigmatic spoofing scenarios, as well as other types of disruptive trading practices, that have been the focus of commodity and securities regulators and the Department of Justice (DOJ).

 

 

Episode 15: SRO Spoofing Enforcement

In this episode, Mayer Brown partners Matt Kluchenek and Glen Kopp continue their discussion on spoofing and other disruptive trading practices. Exchanges, operating as front-line self-regulatory organizations (SRO), have been aggressive in prosecuting spoofing and other price manipulation violations. Matt and Glen delve into SRO enforcement activities in the commodities space and strategic considerations to keep in mind for spoofing investigations.

 

 

Episode 16: CFTC Spoofing Enforcement

Continuing their discussion relating to spoofing and disruptive trading practices, Mayer Brown partners Matt Kluchenek and Glen Kopp discuss the Commodity Futures Trading Commission’s (CFTC) spoofing enforcement program. The CFTC continues to fire on all cylinders in investigating alleged spoofs, manipulations and disruptive trading activities. As Matt and Glen discuss, no abatement in activity appears to be on the horizon, and they also share their thoughts on trends in spoofing enforcement.