The U.S. Commodity Futures Trading Commission (CFTC) reports that it levied a record US$1.7 billion in sanctions in its latest fiscal year.
The CFTC announced that it filed 82 enforcement actions in fiscal 2013, and it obtained orders imposing more than US$1.7 billion in sanctions, including orders for more than US$1.5 billion in civil monetary penalties and more than US$200 million in restitution and disgorgement.
A large chunk of the sanctions levied came in settlements with UBS AG and Royal Bank of Scotland plc (RBS) regarding the alleged manipulation of LIBOR, which resulted in a US$700 million monetary penalty against UBS and a US$325 million penalty for RBS.
The regulator also reports that it opened more than 290 new investigations during the year. And, it notes that it also cooperated with federal and state criminal and civil law enforcement authorities on a number of cases, including sharing information in almost 300 investigations and prosecutions. Approximately 93% of the CFTC’s major fraud cases filed during the year involved a parallel criminal proceeding, with violators sentenced up to 50 years in prison, it said.
“We measure success principally by the impact of our cases: positively influencing market behavior, penalizing and deterring illegal conduct, and requiring orders of restitution for victim losses,” said David Meister, director of the enforcement division.