August 8, 2020

Volume X, Number 221

August 07, 2020

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August 06, 2020

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CFTC Brings First Fraud Case Attributed to Pandemic

On July 8, 2020, the Commodity Futures Trading Commission (CFTC) brought its first case “alleging misconduct tied directly to the pandemic.” The case, CFTC v. James Frederick Walsh, asserts that Walsh fraudulently solicited foreign exchange customers by falsely claiming that “the returns in forex continue to grow as the rest of the financial world continues to suffer.”

There have been additional cases filed during the time of the pandemic, but this is the first that has been openly attributed to the global health crisis. These cases illustrate the CFTC’s continued vigilance into market fraud during the COVID-19 pandemic.  

More about the CFTC’s most recent case can be found on its website.

© 2020 BARNES & THORNBURG LLPNational Law Review, Volume X, Number 191

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About this Author

 Vincent P. Trace Schmeltz III, Barnes Thornburg Law Firm, Chicago and Washington DC, Corporate and Litigation Law Attorney
Partner

Trace Schmeltz is a partner in the Chicago office of Barnes & Thornburg LLP, where he is the co-chair of the firm’s Financial, Corporate Governance, and M&A Litigation Group and a member of the White Collar Crime Defense Practice Group. A trial attorney with experience in numerous forums including the Delaware Court of Chancery, he concentrates his practice on securities, commodities, mergers and acquisitions and white collar criminal litigation. In addition, he has pursued and defended claims on behalf of auditors, investment banks, corporate boards and corporations....

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