In addition, the CFTC and the DOJ alleged that Scotiabank’s compliance program was systematically flawed due to the fact that it failed to detect or prevent its four traders’ illegal trading practices.
Details of the settlement
The settlement amount included $77.4 million to resolve the spoofing and false statements enforcement action. The amount covers $42 million in penalties for spoofing and attempted manipulation, $17 million in penalties for making false and misleading statements, $6.6 million in restitution, and $11.8 million in disgorgement and for retaining an independent monitor.
Of the amount, $60.4 million is for settling the parallel criminal charges filed by the DOJ. Scotiabank entered into a Deferred Prosecution Agreement (DPA) with the Justice Department.
The settlement amount also included a $50 million civil monetary penalties to resolve the CFTC’s swap dealer compliance, supervision, and false statements enforcement action.
Scotiabank committed a serious offense
In a statement, Division of Swap Dealer and Intermediary Oversight Director Joshua B. Sterling said, “The CFTC will continue to apply rigorous oversight to all registrants, and firms will be referred to enforcement whenever there is a strong indication that our rules may have been broken.”
