CFTC imposes penalties of $250k on Peter Bryant and Bryant Capital

The Commodity Futures Trading Commission (CFTC) has taken action against Peter L. Bryant of Texas and his company, Bryant Capital Trade Management Corporation (Bryant Capital). The CFTC has issued an order that both files and settles charges related to fraudulent activities and regulatory non-compliance. These actions pertain to Bryant's role as an unregistered commodity trading advisor (CTA) and the failure to register as required.

As per the order, Bryant and Bryant Capital are obligated to make a joint payment of $55,655.90 for restitution purposes, alongside a civil monetary penalty amounting to $195,000. Additionally, they are compelled to cease any further violations of the Commodity Exchange Act (CEA) and CFTC regulations. The order also enforces a four-year trading and registration ban on both Bryant and Bryant Capital.

Case Background

The order's details reveal that from approximately February 2014 to December 2022, Bryant and Bryant Capital operated as unregistered CTAs. They utilized various methods, including direct outreach, electronic communications, newsletters, and web-based advertisements, to provide advice on trading commodity options, futures, and swaps within energy markets. These solicitations were designed to promote the respondents' paid trading advisory services.

However, the CFTC order highlights that these solicitations contained multiple false and misleading statements about their business operations, expertise, experience in energy derivatives markets, client base, and past performance. For instance, in one newsletter, they inaccurately claimed to have served 47 clients in 2021, offering detailed analyses and recommendations that resulted in substantial cost reductions. Yet, these claims were discovered to be entirely fabricated.

Furthermore, the respondents misleadingly represented that their business was operating as an “exempt swap intermediary,” exempting them from CFTC registration requirements. The order reveals that these misrepresentations led to client losses amounting to at least $55,655.90.

The CFTC emphasizes that orders requiring restitution might not guarantee the recovery of lost funds due to a potential lack of funds or assets. The organization remains steadfast in its commitment to safeguarding customers and holding wrongdoers accountable.

The case was overseen by a dedicated team within the Division of Enforcement, including Nina Ruvinsky, Bryan Hsueh, Allison Passman, Scott Williamson, and Robert Howell.

Public Awareness and Reporting

The CFTC strongly advises the public to verify a company's registration status with the CFTC before investing funds. If a company is unregistered, individuals are advised to exercise caution when considering financial transactions with that company. Information about a company's registration can be accessed through NFA BASIC.

Customers and other individuals who come across suspicious activities or potential violations of commodity trading laws are encouraged to report such instances to the Division of Enforcement. This can be done through a toll-free hotline at 866-FON-CFTC (866-366-2382), by filing a tip or complaint online, or by contacting the CFTC Whistleblower Office. Whistleblowers may be eligible to receive between 10% and 30% of the monetary sanctions as part of the CFTC Customer Protection Fund, which is funded by sanctions collected from violators of the CEA.