The U.S. District Court for the Southern District of Texas entered a consent order against Matthew Clark of Houston, requiring him to pay over $14 million to resolve charges of misappropriating confidential information and directing business in exchange for illegal kickbacks in schemes to defraud his employer.
Under the Feb. 2 order, Clark must pay $7,709,509 in restitution, representing his employer's losses from the kickback scheme, and $6,532,360 in disgorgement, representing Clark's gains from both schemes. The order also permanently prohibits Clark from trading and obtaining CFTC registration.
The consent order resolves all claims the CFTC brought against Clark in a complaint filed in February 2022. The case represents part of a broader enforcement action involving multiple defendants who participated in the fraudulent schemes.
The CFTC's investigation revealed that Clark engaged in two distinct but related schemes. First, he misappropriated confidential information belonging to his employer, using insider knowledge for unauthorized trading advantages. Second, he directed business to certain parties in exchange for illegal kickbacks, violating his duty to his employer and market integrity rules.
The enforcement action demonstrates the CFTC's commitment to pursuing cases involving breach of fiduciary duty and misuse of material non-public information. Such conduct undermines fair and orderly markets by giving certain traders unfair advantages over other market participants.
This case is part of a multi-defendant investigation that has resulted in several related settlements. The CFTC previously charged and settled with broker Mathew Webb for his role in the misappropriation of information and kickback schemes on June 15, 2021. Additionally, the U.S. District Court for the Southern District of Texas entered a consent order against Peter Miller, a proprietary trader, for his participation in the misappropriation scheme on Dec. 22, 2025.
The case also involved parallel criminal proceedings. The Department of Justice charged Clark in February 2022 with conspiracy to commit honest services wire fraud, insider trading, and prohibited commodities transactions based on the same conduct alleged in the CFTC's complaint. Clark pleaded guilty to the criminal charges and, in June 2024, was sentenced to six years and six months in prison. The criminal court also ordered him to pay $7,709,509 in restitution and $6,532,360 in criminal forfeiture, amounts that mirror the civil penalties in the CFTC action.
The substantial monetary penalties reflect both the harm caused to Clark's employer and the profits Clark illegally obtained through his misconduct. The restitution component ensures that the victimized employer recovers losses directly attributable to the kickback scheme. The disgorgement amount strips Clark of ill-gotten gains from both the information misappropriation and kickback schemes.
The permanent trading ban and registration prohibition serve as additional deterrents, preventing Clark from engaging in future commodities trading or serving in any capacity requiring CFTC registration. This lifetime bar protects market integrity by removing a proven bad actor from the derivatives marketplace.
The CFTC's enforcement priorities include pursuing cases involving misappropriation of confidential information, which threatens market fairness and undermines investor confidence. When employees with access to material non-public information abuse that access for personal gain, it creates an uneven playing field that disadvantages honest market participants.
Similarly, kickback schemes violate fundamental principles of market integrity by creating improper incentives for directing business based on personal enrichment rather than client interests. Such conduct can distort market dynamics and harm both direct victims and the broader marketplace.
The multi-year investigation that led to this settlement demonstrates the CFTC's willingness to pursue complex cases involving multiple defendants and overlapping schemes. By coordinating with criminal authorities, the agency ensures that wrongdoers face both civil and criminal consequences for their misconduct.
The substantial financial penalties in this case send a strong message to market participants about the consequences of violating CFTC regulations. The $14.2 million total represents one of the larger individual settlements the agency has secured for this type of misconduct.
For market participants, this case serves as a reminder of the importance of maintaining robust compliance programs and internal controls to prevent misuse of confidential information and conflicts of interest. Firms must ensure that employees understand their obligations regarding material non-public information and that appropriate safeguards exist to detect and prevent unauthorized trading.
The resolution of Clark's case, combined with the previous settlements involving Webb and Miller, demonstrates the CFTC's ability to unravel complex schemes involving multiple participants across different market roles. This comprehensive approach ensures that all wrongdoers face appropriate consequences for their participation in fraudulent conduct.