U.S. Commodity Futures Trading Commission Sanctions

The Commodity Futures Trading Commission issues and disciplines Commodity Pool Operator Registrations, Commodity Trading Advisor Registrations, Futures Commission Merchant Registrations and Introducing Broker Registrations. The CFTC also issues and disciplines Associated Persons and Floor Brokers. Commodity Futures Trading Commission enforces laws and regulations through its Division of Enforcement.  The Division of Enforcement undertakes Administrative proceedings to impose civil penalties on licensees and Associated Persons. Furthermore, the CFTC Division of Enforcement may deny, suspend or revoke a registration or exchange trading privileges.  A Judgment Officer presides over the CFTC Hearing. A denial or A Judgment Officer’s decision can be appealed to the Commodity Futures Trading Commission to reverse, modify, set aside or remand the Judgment Officer’s decision.

Federal Trade Commission Administrative Hearings

The Federal Trade Commission, or FTC, maintains a panel of Administrative Law Judges to adjudicate Administrative Complaints in consumer protection matters. The FTC seeks to discipline individuals and businesses for “unfair or deceptive acts or practices.” The FTC’s Bureau of Consumer Protection represents the Federal Trade Commission in Hearings before an FTC Administrative Law Judge. The Administrative Law Judge’s decision can be Appealed to the entire Federal Trade Commission. The FTC Administrative Law process also hears matters involving violations of FTC Act and Clayton Act antitrust laws that seek to prohibit “unfair methods of competition.”

FINRA (Financial Industry Regulatory Authority) Disciplinary Hearings

FINRA is a Self Regulatory Organization that licenses and regulates member firms (called Broker Dealers) and their Associated Persons. FINRA conducts enforcement investigations and disciplinary actions against member firms Associated Persons. FINRA disciplinary actions resolve through settlement, a Hearing or by the resignation of the Broker Dealer or Associated Person. FINRA Hearings are formal disciplinary proceedings held before a penal of three Hearing Officers. FINRA discipline can include significant fines, suspension of practice or a bar order from FINRA member firms. FINRA Associated Persons commonly are disciplined for criminal convictions and failure to update FINRA Uniform Registration Forms.

Securities and Exchange Commission (SEC) Enforcement Actions

The United States Securities and Exchange Commission (SEC) initiates Administrative disciplinary actions by serving an Order Instituting Proceeding.  Typically, a Respondent must file an answer within twenty (20) days after being served with the Order Instituting Proceeding.  Disciplinary matters proceed to an SEC Administrative Hearing before an Administrative Law Judge. An SEC Administrative Law Judge can issue discipline including a Cease and Desist Order, Censure, Limitation on Activities, Suspension, or a Bar from the Securities Industry in the United States. SEC Administrative Law discipline often includes disgorgement of funds and significant financial penalties. Administrative Law Judge decisions are subject to review and Final Order by the actual Securities and Exchange Commission.

Public Company Accounting Oversight Board (PCAOB) Enforcement Actions

The Public Company Accounting Oversight Board, or PCAOB, is a federally created Self Regulatory Organization that regulates the audits of public companies and Broker Dealers. PCAOB maintains a disciplinary process for members. Disciplinary Hearings are presided over by a Hearing Officer employed by PCAOB. Hearing Officer decisions can be appealed to the Public Company Accounting Oversight Board. The PCAOB operates underneath the purview of the Securities & Exchange Commission, so disciplinary actions are subject to final review by the Securities & Exchange Commission.

United States Department of the Treasury OFAC Violations

The United States Department of the Treasury Office of Foreign Assets Control, or OFAC, administers and enforces economic trade sanctions. OFAC Violations can result in the assessment of civil penalties. If an economic sanctions violation occurs, OFAC can issue a Finding of Violation and assess a civil monetary penalty, which can be Appealed. If OFAC determines insufficient evidence of a violation exists, a Cautionary Letter may be issued. OFAC also issues licenses to permit particular economic transactions involving sanctioned parties. These OFAC licenses can be withheld, denied, suspension, modified or revoked. OFAC can also issue a Cease and Desist Order to alleged violators. Depending on the nature of the OFACT Violation, some OFAC Administrative Law matters may be heard in writing, in person before a Hearing Officer, or in person before an Administrative Law Judge.