FTC Sends Warning Letters to CBD Companies Advertising Treatments for Serious Diseases

FTC Sends Warning Letters to CBD Companies Advertising Treatments for Serious Diseases

The FTC announced today that it sent letters to multiple companies that sell CBD products, waring them that claims they made regarding CBD violate federal law.  These “warning letters” state that it is illegal to advertise that a product can prevent, treat, or cure human disease without competent and reliable scientific evidence to support such

CFTC and CME Charge Trader for Violations Related to Live Cattle Futures

CFTC and CME Charge Trader for Violations Related to Live Cattle Futures

The Chicago Mercantile Exchange (CME) and Commodity Futures Trading Commission (CFTC) issued an Order filing and settling charges against Nathan Harris, a registered trader, for fraud, unauthorized trading, and violating speculative position limits in live cattle futures contracts. It’s alleged that between January 2012 and August 2014, Harris engaged in fraud and unauthorized trading by

FinCEN Adds Global Investigations Division to Combat Overseas Money Laundering

FinCEN Adds Global Investigations Division to Combat Overseas Money Laundering

The Financial Crimes Enforcement Network (“FinCEN”) unveiled its Global Investigations Division (“GID”), which will be responsible for both domestic and international investigation under the Bank Secrecy Act (“BSA”). GID will utilize FinCEN’s BSA authorities to investigate and target terrorist finance and money laundering threats, and GID will work with foreign counterparts to coordinate actions against

In an Unusual Agreement, Kraft and Mondelez Consents to $16 Million Penalty for Futures Manipulation with the CFTC

In an Unusual Agreement, Kraft and Mondelez Consents to $16 Million Penalty for Futures Manipulation with the CFTC

The CFTC action against Kraft and Mondelez for manipulation of the wheat futures markets is over. Yesterday, Kraft and Mondelez agreed to a $16 million civil monetary penalty and an injunction against future manipulative actions. Interestingly, the CFTC cannot comment on the action because it agreed to the following provision in the consent order: “Neither

Citibank Unit fined $1.25 Million Fine for Poor Background Check Procedures

Citibank Unit fined $1.25 Million Fine for Poor Background Check Procedures

According to FINRA, Citigroup’s brokerage unit, Citigroup Global Markets, Inc., failed in running background checks on at least 10,400 non-registered associated persons, which led to three individuals who’d been convicted of crimes working for the firm. Federal securities laws require broker-dealers to fingerprint associated persons working in a non-registered capacity before or upon association with

Broker Takes Fight Against Industry Ban to the Supreme Court

Broker Takes Fight Against Industry Ban to the Supreme Court

Lawrence Fejokwu and his company, Chazon QTA Quantitative Trading Artists LLC, was banned from National Futures Association (NFA) membership after Fejokwu refused to help with its investigation. The U.S. Commodity Futures Trading Commission (CFTC) agreed with the NFA, and the Third Circuit ruled that the CFTC didn’t abuse its discretion in sustaining the ban. Now,

A Broken Record: CFTC Fines Another Binary Options Firm for Illegal Off-Exchange Trading

A Broken Record: CFTC Fines Another Binary Options Firm for Illegal Off-Exchange Trading

Today, the U.S. Commodity Futures Trading Commission (CFTC) issued an Order filing and settling charges against Curtis Dalton of Middleton, Massachusetts, requiring him to pay $200,000 for offering illegal off-exchange retail commodity transactions to U.S. and overseas customers while failing to be registered by the CFTC. The transactions offered by Dalton consisted of binary options

Perry Featured in Disruptor Daily Series on Blockchain

Perry Featured in Disruptor Daily Series on Blockchain

  Kennyhertz Perry, LLC Partner Braden Perry was featured as one of several Blockchain experts in the Disruptor Daily series on emerging technology and Blockchain in industry. Perry discussed practical Blockchain applications in the areas of energy, agriculture, and cannabis. Perry has extensive experience advising clients in federal inquiries and investigations, particularly in enforcement matters

CME and CFTC Charge Unregistered Hedge Fund with Spec Limit Violations

CME and CFTC Charge Unregistered Hedge Fund with Spec Limit Violations

The Chicago Mercantile Exchange (CME) and Commodity Futures Trading Commission (CFTC) issued an Order filing and settling charges against an unregistered Hong Kong-based hedge fund, Elephas Investment Management Ltd. (Elephas), for violating speculative limits in wheat contracts. Regulation 150.2 sets speculative position limits that any person may hold or control for CBOT SRW futures contracts,