On March 18, the Commodity Futures Trading Commission (“CFTC”) issued a Customer Advisory cautioning the public to be on alert for increased fraudulent activity amidst the COVID-19 pandemic. The agency’s alert followed a series of similar warnings published by other agencies. The CFTC advised that fraudsters may be attempting to profit by taking advantage of investors’ desire to recoup losses or seek safety in the wake of recent market volatility. Fraudsters may promise investors special insider knowledge or insights, unusually large returns, guarantees, surefire trading signals, or low costs to open accounts.
Continue Reading CFTC Warns of Fraudsters Capitalizing on Investors’ COVID-19 Concerns and Promises Aggressive Enforcement Action
Fraud
New York DFS Revamps Its Consumer Protection Arm
Posted in Consumer, Enforcement
On April 29, 2019 the New York State Department of Financial Services (“DFS”) announced that it has created a new division, called the Consumer Protection and Financial Enforcement Division, which combines the previously separate Enforcement Division and Financial Frauds and Consumer Protection Division.
The new division will be “responsible for protecting and educating consumers and…
New York State Department of Financial Services Issues Guidance on Fraud and Market Manipulation in Virtual Currency Markets
By Lily Katharine Hines & David Stein on
Posted in Fintech, Regulatory Compliance
On February 7, 2018, the New York State Department of Financial Services (“DFS”) issued guidance for all virtual currency business entities (“VCBEs”) regarding the prevention of market manipulation and other wrongful activity. In a brief, two-page document, the DFS: (1) emphasized the importance of effectively preventing and responding to fraud and similar wrongdoing; (2) stated…