CFTC Announces Enforcement Updates: Penalties in Market Misconduct Cases and Charges Against Unregistered Scheme

The Commodity Futures Trading Commission (CFTC) has issued three major enforcement updates. These include a federal court order imposing civil monetary penalties and trading bans on precious metals spoofers, a federal court order requiring a Florida resident and his firm to pay over $335,000 for misappropriating confidential information and fictitious trading, and charges against an Oklahoma man and his unregistered commodity pool operator with fraud and registration violations.

Precious Metals Spoofing Case

The U.S. District Court for the Northern District of Illinois entered consent orders against Gregg Smith of New York and Michael Nowak of New Jersey, both formerly employed at a major bank, for spoofing in the precious metals futures markets.

Smith must pay $200,000 and faces a three-year trading and registration ban. Nowak must pay $150,000 and is barred for six months. Both are permanently prohibited from violating the spoofing prohibition under the Commodity Exchange Act.

The case stems from a CFTC enforcement action filed in September 2019.

Misappropriation & Fictitious Trading Case

The U.S. District Court for the Southern District of Texas entered a consent order against Peter Miller of Miami and his firm Omerta Capital LLC.

The defendants are jointly liable for $135,788 in disgorgement (unlawful gains) and a $200,000 civil penalty. They are also prohibited from registration and trading for 18 months, and from block trading for five years.

The order resolves claims filed by the CFTC in December 2021, later amended in December 2022.

Fraud & Registration Violations Case

The CFTC filed a complaint in the U.S. District Court for the Northern District of Oklahoma against Travis Ford and his company, Wolf Capital Crypto Trading LLC.

They were charged with fraudulently soliciting and accepting more than $10 million from investors for an unregistered commodity pool. The CFTC seeks restitution, disgorgement, civil penalties, permanent trading and registration bans, and a permanent injunction against further violations.

The CFTC urges the public to verify a company’s registration through the NFA BASIC database before investing. Unregistered firms operate outside regulatory oversight, leaving investors with little or no protection and at risk of losing their entire investment.

At the end of December 2025, the CFTC added 15 entities to its Registration Deficient (RED) List.