The Commodity Futures Trading Commission published a statement by Acting Chairman Caroline D. Pham responding to a federal district court report in CFTC v. Traders Global Group Inc that recommends sanctions against the agency for misconduct. Pham characterized the court’s findings as willful and bad faith conduct involving multiple false statements and other sanctionable behavior, and said the CFTC must accept accountability and take corrective action. The court report cited involvement of both line attorneys and the highest levels of management in the Division of Enforcement and found the CFTC failed in its duty of candor at almost every stage of the case, alongside violations of attorney professional conduct rules. The release notes that some staff were removed from the case in 2024 following the sanctions motion, and that staff have been placed on administrative leave pending further investigation. Pham also described remediation measures since she became Acting Chairman in January, including reorganizing the Division of Enforcement, introducing a task force model to support specialization and mentoring, issuing public guidelines to encourage self-reporting and cooperation, reducing a backlog of noncompliance matters while redirecting resources toward more serious fraud and manipulation cases, adopting a Justice Department policy aimed at ending regulation by prosecution, improving inter-division communication and referral procedures, and expanding trial advocacy and ethics training, with additional sessions planned.

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