On January 16, 2025, the Securities and Exchange Commission (“SEC”) filed a settled enforcement action against a pair of related investment advisers (the “Investment Adviser”) for allegedly breaching their fiduciary duties by failing to reasonably address known vulnerabilities in their investment models, and also for allegedly taking steps to impede employees from serving as whistleblowers in violation of SEC Rule 21F-17. 

On January 13, 2025, one week before Chair Gary Gensler is expected to step down as Chair, the Securities and Exchange Commission (“SEC”) announced settlements with twelve additional regulated entities for alleged recordkeeping failures related to off-channel communications. 

On December 13, 2024, the United States Attorney’s Offices for the Western District of Virginia and the District of Massachusetts, along with the Department of Justice’s (“DOJ”) Consumer Protection Branch (collectively, “the United States”) filed a Deferred Prosecution Agreement in the United States District Court for the Western District of Virginia with a global consulting firm (“Consulting Firm”) to settle charges that it conspired with a pharmaceutical company (“Pharmaceutical Company”) to aid and abet the misbranding of prescription drugs and knowingly destroyed and concealed records and documents to impede and obstruct the investigation.  United States v. McKinsey & Co., Inc. United States, No. 1:24-cr-00046, Doc. 2 at 6 (W.D. Va. Dec. 13, 2024).  A corresponding civil case, United States v. McKinsey & Co., Inc. United States, No. 1:24-cv-00063, Doc. 2 (W.D. Va. Dec. 13, 2024), was settled the same day.  The Consulting Firm agreed to pay $650 million to resolve the criminal and civil investigation.  A former Consulting Firm senior partner also separately pled guilty to a charge of knowingly destroying and concealing records and documents to impede and obstruct the investigation.

On October 2, 2024, the Commodity Futures Trading Commission (“CFTC”) filed a complaint in the U.S. District Court for the Southern District of New York against the former chief executive officer of a carbon credit project developer. The CFTC complaint alleges that the CEO, from approximately 2019 to December 2023, reported false and misleading information to at least one carbon credit registry and to third-party reviewers, presenting a misleading impression of the quality of emissions-reduction projects to obtain carbon credits above what the company was entitled to receive, and sold them to others.

On September 30, 2024, the Securities and Exchange Commission (“SEC”) filed a settled enforcement action against a former director of a public company (the “Company”) over claims that the director had failed to disclose his close personal friendship with a senior executive at the Company, leading to alleged misstatements in the Company’s proxy materials identifying him as an independent director from 2019 to 2023. Securities and Exchange Commission v. Craigie, Docket No. 1-24-cv-07382 (S.D.N.Y. Sept. 30, 2024). Without admitting or denying the allegations, the former director agreed to settle the claims which impose a five-year bar on him serving as an officer or director of a public company and require him to pay a civil penalty of $175,000. The Court approved this settlement on October 1, 2024.

On August 27, 2024, the Commodity Futures Trading Commission issued an order filing and simultaneously settling charges against a Swiss energy trader (the “Company”), for allegedly attempting to manipulate the European gasoline market in violation of the Commodity Exchange Act (“CEA”) and CFTC regulations. The order imposes a $48 million civil monetary penalty against the Company, which the CFTC claimed improperly sold gasoline at below-market prices to benefit certain short positions it held in gasoline-linked futures contracts.

On March 27, 2023, the Commodity Futures Trading Commission (“CFTC”) filed a civil enforcement action against three entities that operate a digital asset exchange (the “Company”) and its Founder and Chief Executive Officer (collectively “Defendants”) for willful violation of the Commodity Exchange Act (“CEA”) and CFTC regulations. Further, the CFTC charged the Company’s Former Chief Compliance Officer with aiding and abetting these violations. See Complaint, Commodity Futures Trading Comm’n v. Zhao, et al., Civil Action No. 1:23-cv-01887 (N.D. Ill. Mar. 27, 2023).

On May 17, 2022, the U.S. Department of Justice (“DOJ”) and the U.S. Securities and Exchange Commission (“SEC”) announced parallel resolutions with a registered investment advisor (the “Advisor”), resolving criminal and civil securities fraud allegations concerning three portfolio managers’ concealment of downside risks associated with the Advisor’s trading strategy, “Structured Alpha,” and the failure to implement an adequate control function in the Advisor’s Structured Products Group.  United States v. AllianzGlobal Investors U.S. LLC, No. 1:22-cr-00279 (S.D.N.Y); Securities and Exchange Commission v. Tournant, Taylor, and Bond-Nelson, No. 1:22-cv-04016 (S.D.N.Y.).  Three related indictments of former portfolio managers of the Advisor whose conduct contributed to the Advisor’s settlement were also unsealed.  United States v. Gregoire Tourant, No. 22-cr-00276 (S.D.N.Y.); United States v. Trevor Taylor, No. 22-cr-00149 (S.D.N.Y.); United States v. Stephen Bond-Nelson, No. 22-cr-00137 (S.D.N.Y.).