“Tower Research Capital LLC traders fraudulently placed thousands of counterfeit orders that they never wanted to execute — to deceive other market participants and incentivize the market for their own benefit,” said Brian A. Benczkowski, deputy attorney general of the Department of Justice. “This agreement provides for fines, the return of unfair profits and compensation to victims to protect our country`s commodity markets from manipulation.” Today, the DOJ Fraud Section announced, in a separate lawsuit, that it has entered into possession of a Laferred prosecution agreement with Tower in a side case that postpones Tower`s prosecution for merchandise fraud. On October 24, 17, 2019, Tower Research Capital LLC (Tower) entered into a Deferred Prosecution Agreement (DPA) and agreed to pay a total amount of criminal money of $67,493,849 in criminal fines, criminal indemnities and victim compensation. The DPA stems from criminal charges related to a commodity fraud scheme that includes thousands of episodes of illegal business activity in U.S. commodity markets by three former traders. Tower has reached a Deferred Prosecution Agreement (DPA) as part of a criminal investigation filed yesterday in South Texas, which charges the company with commodity fraud. Under the terms of the DPA, Tower agreed to pay a total of $67.4 million in criminal fines, criminal indemnities and victim compensation, with the criminal fine credited with all payments to the Commodity Futures Trading Commission (CFTC). Tower has also agreed, among other things, to conduct appropriate audits of its internal controls, policies and procedures and, if necessary, to amend its compliance program to ensure that it is designed to deter and detect violations of the Commodity Exchange Act and the Commodity Fraud Act. The company has agreed to review its internal controls, policies and procedures as part of the agreement, the Justice Department said. New York-based Tower, which was one of the most active participants in the equity and derivatives markets, also signed a deferred prosecution agreement with the Department of Justice, which worked closely with the Commodity Futures Trading Commission in such cases. Such false and misleading information should prompt other market participants to respond to the manifest change and imbalance in supply and demand by buying and selling electronic futures at volumes, prices and periods that they would not otherwise have traded.

The Department of Justice and Tower have submitted a joint request, which is subject to court approval, to postpone the prosecution and proceedings against Tower of the criminal information filed during the period of the DPA. . . .

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