Scotiabank Will Pay $127.4 Million to Settle Spoofing Claims
- Bank misled government about scope of misconduct, CFTC says
- Accord settles investigations by CFTC and Justice Department
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Bank of Nova Scotia agreed to pay $127.4 million to settle U.S. allegations that the company engaged in spoofing of gold and silver futures contracts, and made false statements to the government.
As part of the accord, Bank of Nova Scotia will pay a $17 million fine on Commodity Futures Trading Commission claims that it dramatically misrepresented the scope of the alleged wrongdoing. The bank made multiple false statements during the CFTC’s investigation of a spoofing case that was resolved in 2018 for $800,000, the agency said. The regulator said the new punishment reflects Bank of Nova Scotia’s lack of cooperation in the earlier probe and actions it took to conceal its misconduct.