WASHINGTON, June 17,
2024 /PRNewswire/ -- Today, the U.S. Commodity
Futures Trading Commission (CFTC) announced a $55 million enforcement action against Trafigura
Trading LLC over allegations that the global commodities trader
engaged in corruption and market manipulation relating to oil
trading. The case is the result of a disclosure filed by a
whistleblower through the CFTC Whistleblower Program.
"This is a great day for accountability and for fighting
transnational corruption," said Kohn, Kohn & Colapinto founding
partner Stephen M. Kohn, who
represented the whistleblower during the CFTC's confidential
investigation. "Whistleblowers demonstrate immense bravery in
coming forward. During the course of the entire lengthy
investigation the CFTC's staff demonstrated professionalism and a
deep respect for the stress and hardship whistleblowers face," Kohn
added.
The sanctions also cover allegations that Trafigura illegally
impeded the rights of employees to blow the whistle through the use
of restrictive non-disclosure agreements (NDAs). This marks the
first sanctions ever levied by the CFTC for such a violation. KKC
also represented a whistleblower in the first enforcement action
filed by the U.S. Securities and Exchange Commission (SEC) for NDAs
which restrict whistleblowing.
"This is a giant breakthrough in the international commodities
market," said Kohn. "This enforcement action sends a message that
the CFTC is joining with other agencies in cracking down on the use
of illegal NDAs which restrict whistleblowing. The CFTC knows that
whistleblowers are critical to its enforcement efforts and is
clearly committed to ensuring that companies, including privately
held ones such as Trafigura, are not able to silence whistleblowers
through NDAs."
According to the CFTC, Trafigura "traded gasoline while in
knowing possession of material nonpublic information it knew or
should have known had been misappropriated from a Mexican trading
entity (MTE)" and "manipulated a fuel oil benchmark to benefit its
futures and swaps positions, including derivatives traded on
United States registered
entities."
"Holding a multinational company headquartered in Singapore accountable for misconduct which
occurred in Mexico further
demonstrates the transnational scope and impact of U.S. laws and
whistleblower programs," Kohn said. "The CFTC Whistleblower Program
is proving to be a critical tool in efforts to combat corruption
globally," he added.
"The fact that the CFTC has joined the ranks of law enforcement
agencies fighting corruption in recent years is a major advance in
putting an end to bribery, money laundering and market
manipulation," Kohn continued. "Corruption has a disproportionate
negative impact towards developing nations and the poor. U.S. law
enforcement can play a major role in ensuring this misconduct does
not go unchecked."
Kohn will be participating at the 2024 International
Anti-Corruption Conference (IACC) in Lithuania from June
18-21. On June 20, he will be
teaching an exclusive workshop: "Whistleblower Awards Go
Global: How to Use Transnational Anti-Corruption Laws." To
learn more and register your interest, head to the event page
here.
Mr. Kohn is available for further comment on the matter.
Contact: Kate Reeves
kate.reeves@kkc.com
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SOURCE Kohn, Kohn & Colapinto LLP