Release: 4968-04
For Release: August 11, 2004

U.S. COMMODITY FUTURES TRADING COMMISSION'S DIVISION OF ENFORCEMENT ISSUES ADVISORY IDENTIFYING COOPERATION FACTORS THAT MAY REDUCE A LITIGANT'S SANCTIONS

WASHINGTON, D.C. – The Division of Enforcement (Division) of the U.S. Commodity Futures Trading Commission (CFTC) today issued an Enforcement Advisory (Advisory) identifying and discussing cooperation factors that the Division may take into account when recommending enforcement sanctions for violations of the Commodity Exchange Act. The Advisory is intended to provide assistance to defendants and their counsel in assessing possible settlement positions and litigation risks, and to help those persons identify conduct that may mitigate a party's sanctions.

The Advisory outlines three broad categories of cooperation factors and provides a list and discussion of additional points that may lend weight or perspective to the cooperation factors. According to the Advisory, the Division is most likely to afford recognition to a party's efforts to cooperate when the party's conduct is sincere, cooperative and indicative of a willingness to accept responsibility for the wrongdoing. The Advisory goes on to say that the Division is least likely to recommend reduced sanctions when a company hides or misrepresents information about the misconduct, impedes Division efforts to obtain information, and creates a drain on government resources by prolonging the Division's investigation unnecessarily.

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Related Document
Advisory