The Federal Energy Regulatory Commission and the Commodity Futures Trading Commission (CFTC) were quite busy during the first year of operation of the President’s Corporate Fraud Task Force, according to a White House fact sheet released last week.

FERC investigations into the manipulation of energy markets and violations of standards of conduct resulted in settlements of more than $35 million on behalf of energy customers during the first year, the Bush administration said. In addition, “FERC has revoked the marketing authorizations for Enron affiliates and is pursuing similar actions against other market participants.”

In contrast, the CFTC’s enforcement activities, which included investigations of over 30 energy companies, yielded more than $133 million in civil penalties and $105 million in restitution and returned profits, the White House noted. All told, the CFTC in the past year brought 58 enforcement actions against 157 defendants.

Both the CFTC and FERC are key regulatory members of the corporate fraud task force, which was established last July in response to an executive order.

Based on the total penalties assessed, the CFTC appeared to be more aggressive during the past year than the entire Department of Justice (DOJ), which yielded more than $85 million in restitution, fines and forfeitures in connection with corporate fraud cases. But the DOJ had a high conviction record for the year, obtaining more than 250 corporate fraud convictions or guilty pleas, and charging 354 defendants with some form of corporate fraud, the White House said.

The Securities and Exchange Commission (SEC), also a task force member, filed almost 50% more financial fraud and reporting cases in fiscal 2002 than in the prior year, according to the White House. From Oct. 1, 2002 through June 30, 2003, the federal agency initiated 443 enforcement actions, 137 of which involved financial fraud or reporting.

Eleven companies have been suspended from trading, and the assets of 30 companies have been frozen, the administration said. In addition, the SEC has sought to bar 124 offending corporate executives and directors from ever serving in publicly traded companies.

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