CFTC hits former bank managing director with $90,000 penalty

The CFTC found John Patrick Gorman III made false or misleading statements during an enforcement investigation.

The Commodity Futures Trading Commission has ordered John Patrick Gorman III to pay $90,000 after finding that the swap trader made false or misleading statements during an agency investigation.

According to the consent order, Gorman, a managing director at a global investment bank, deleted WhatsApp messages and a text message relevant to the probe after receiving a document preservation request in March 2019. When investigators later imaged his phone, numerous responsive WhatsApp messages were missing.

Gorman also submitted a letter stating that he had not destroyed or altered the documents covered by the request and repeated misleading claims during CFTC testimony.

The settlement permanently bars him from violating the relevant Commodity Exchange Act provision and dismisses two counts of the agency’s 2021 complaint.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

The Commodity Futures Trading Commission has ordered John Patrick Gorman III to pay $90,000 after finding that the swap trader made false or misleading statements during an agency investigation.

Gorman also submitted a letter stating that he had not destroyed or altered the documents covered by the request and repeated misleading claims during CFTC testimony.

The settlement permanently bars him from violating the relevant Commodity Exchange Act provision and dismisses two counts of the agency’s 2021 complaint.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.