Former JPMorgan Trader Drops Lawsuit Against CFTC

JPMorgan Trader Drops Lawsuit Against CFTC

Richard Usher, a former JPMorgan Forex trader, has decided to end his legal battle against the Commodity Futures Trading Commission (CFTC).

JPMorgan Trader Drops Lawsuit Against CFTC

Richard Usher, one of the members of the so-called “FX Cartel”, was being pursued by the Office of the Comptroller of the Currency (OCC) for administrative sanctions, despite being found not guilty in a criminal case in 2018. He took legal action and filed a complaint with the Columbia District Court to force the CFTC to provide him with discovery materials for the OCC case.

The OCC attempted to ban Usher from banking and seize $1.5 million from him, claiming his FX trading activities caused JPMorgan Chase to enter into a settlement with the CFTC. They also alleged Usher should be held accountable and punished for “endangering the safety and soundness” of the bank.

To substantiate the OCC’s claims, Usher requested a subpoena from the administrative judge of the OCC case for documents related to the bank’s settlement with the CFTC. This way, he can challenge the assertion that he was the one who caused the bank to settle and should consequently be punished.

The CFTC has denied a subpoena from another government organization. According to Usher, the CFTC was neglecting an appropriately authorized procedure. As an alternative to complying with the subpoena, the CFTC suggested that the defendant should file a Freedom of Information Act (FOIA), which is not adequate.

Usher underlined that the CFTC is not exempt from the law. In summary, Usher expressed dissatisfaction that the CFTC, which has access to documents necessary for Usher’s defense before another government agency (the OCC), declined to accept that enforcing the agency’s power to require the production of such documents.

The plaintiff stated that the CFTC’s refusal to provide the documents Usher needs:

  • Contravenes Usher’s right to compulsory process for defending himself.
  • Is wrong according to law.
  • Raises questions of separation of powers.

Several months later, the OCC informed Usher that it would voluntarily and definitively dismiss its action against him. The CFTC argued that this renders the case against it moot.

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