CFTC Wins $7.49 Million Jury Verdict in Texas Broker Trading Case

Washington, D.C.— The Commodity Futures Trading Commission today revealed a court in the Southern District of Texas released a decision searching for Andrew Gizienski as well as EOX Holdings, LLC(EOX) accountable for privately taking the opposite side of their clients’ orders without authorization 65 times and also revealing their consumers’ private order info 5 times, in infraction of CFTC laws. The court granted $7 million in civil financial charges for these offenses. The court additionally discovered EOX responsible for both falling short to monitor Gizienski as well as to produce and/or preserve necessary duplicates of 7 pre-trade interactions. The court granted $490,000 in civil financial charges for these infractions.

The judgment was introduced August 9 after a 5-day test in Houston, Texas. The test was the conclusion of an activity the CFTC brought versus Gizienski as well as EOX on September 28, 2018, affirming that offenders mistreated client details by trading on product, non-public details as well as divulging personal client info to a preferred customer. [See CFTC Press Release No. 7811-18]

” The CFTC is dedicated to preserving the honesty of the marketplaces as well as securing clients,” stated Acting Director of Enforcement Gretchen Lowe. “As we stated initially of this situation, the unlawful use within or secret information weakens self-confidence in markets as well as will certainly not be endured.”

The CFTC provided various witnesses as well as docudrama proof, consisting of immediate message conversations and also profession information, to develop Gizienski continuously divulged consumer names and also orders, and also traded contrary his very own clients.

In enhancement to the court’s $7.49 million civil financial fines honor, Senior Judge Sim Lake enforced a 120- day trading as well as enrollment restriction on Gizienski. Court Lake likewise bought EOX to apply ample plans as well as treatments within 60 days, as well as completely told both offenders from more offenses of the CEA.

Division of Enforcement personnel in charge of this instance are Candy Haan, Doug Snodgrass, Heather Dasso, Ray Lavko, Joseph Konizeski, Scott Williamson, Robert Howell as well as previous personnel Daniel Burstein.