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DOJ

15 May 2019

A New Roadmap: CFTC Releases Its First-Ever Public Enforcement Manual

On May 8, 2019, the Commodity Futures Trading Commission (CFTC) Division of Enforcement (DOE or Division) released its first publicly available Enforcement Manual. The Manual provides an overview of the Division and sets out the general policies and procedures that guide its Staff in detecting, investigating and prosecuting violations of the Commodity Exchange Act (CEA) and Commission regulations. According to its simultaneous press release, in publishing the Manual the CFTC intends to “increase transparency, certainty, and consistency, and, more generally, to advance the rule-of-law principles that underpin all DOE and CFTC enforcement actions.”

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24 August 2018

U.S. EPA and DOJ Bring Criminal Prosecution for Tampering with On-Board Diagnostic Systems on Vehicles

Earlier this summer, the Department of Justice (DOJ) and Environmental Protection Agency’s (EPA) criminal office announced criminal charges against employees of an oil and gas operation for tampering with and disabling pollution controls and on-board diagnostic (OBD) systems on the company’s truck fleet. DOJ and EPA charged five employees of Rockwater Northeast LLC, a company that services the hydraulic fracturing industry, for modifying emission control and OBD systems on approximately 30 of the company’s heavy-duty diesel trucks. (more…)

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25 June 2018

Energy Enforcement Update

This week’s enforcement update covers:

  • FERC issues Order to Show Cause to Footprint for alleged tariff violations and submission of false information;
  • The Supreme Court denies TOTAL petition for writ of certiorari;
  • FERC settles with Duke Energy regarding alleged violation of FERC market behavior rule on communications;
  • CFTC orders Société Générale S.A. to pay $475 million penalty to resolve charges of alleged LIBOR and Euribor manipulation; and
  • U.S. Department of Justice announces new policy on coordination of corporate penalties.

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07 February 2018

Energy Enforcement Update

This week’s enforcement update covers:

  • CFTC orders Deutsche Bank Securities Inc. to pay $70 million penalty for attempted manipulation of ISDAFIX benchmark;
  • CFTC and DOJ announce spoofing charges against banks and individuals;
  • FERC files amended complaint in case against Powhatan and Chen;
  • Judge grants joint motion on summary judgment procedure in FERC case against Silkman/CES;
  • FERC OE files answer to BP motion seeking dismissal based on statute of limitations;
  • FERC Chairman testifies on grid performance during recent weather events; and
  • FERC Commissioner Rich Glick stresses importance of FERC enforcement regime.

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27 January 2017

Energy Enforcement Update

In this enforcement update, we cover:

  • CFTC’s enforcement division issues new advisories on cooperation;
  • FERC and ETRACOM file briefs regarding scope of review in district court;
  • FERC revises PJM FTR forfeiture rule and discusses cross-product manipulation;
  • Citigroup Global Markets Inc. settles spoofing charges with the CFTC;
  • DOJ settles with Duke Energy for violating premerger notification and waiting period requirements; and
  • TOTAL files motion for leave to respond and response in FERC proceeding.

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22 December 2016

Supreme Court Affirms Insider Trader Ruling in Salman v. United States

On December 6, the Supreme Court unanimously affirmed a Ninth Circuit decision involving the scope of “personal benefit” required to find insider trading under the securities laws.  Salman involved an investment banker who provided inside information about pending mergers to his brother, intending that the brother would benefit from the information.  The brother traded on the tips and (without his brother’s knowledge) tipped additional friends – including Salman – who also traded.  The Court determined the facts of this case fell within the language of the 1983 Dirks decision, which found that a tipper breaches a fiduciary duty by making a gift of confidential information to a “trading relative.”  The Court did not agree with Salman’s position that only a clear pecuniary benefit to the tipper should trigger liability.

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21 December 2016

Law Professors File Amicus Brief on De Novo Review, and FERC Files Opposition, in Powhatan/Chen Proceeding

On December 7, a group of ten administrative law professors filed a brief of amici curiae in the Powhatan/Chen proceeding in the U.S. District Court for the Eastern District of Virginia, which criticizes FERC’s position on what constitutes de novo review under Section 31(d) of the Federal Power Act (FPA).  The brief is substantially similar to the brief filed last month on behalf of Barclays in the U.S. District Court for the Eastern District of California, which was denied by Judge Nunley.  According to the brief, “Amici have grave concerns about the legal and policy implications of FERC’s apparent view of what constitutes a district court’s ‘de novo review’ of an agency’s civil penalty assessment.”  The professors argue that FERC’s position runs counter to the traditional understanding of court enforcement actions for civil penalties and cannot be squared with the FPA’s civil penalty assessment mechanism, which gives a defendant the choice of challenging FERC’s penalty assessment in a full trial-type proceeding before either an administrative law judge or a federal district court.

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