CFTC Faces Challenge with Oil Manipulation Case
By Alison Ciaccio and Brian Scheid
June 1, 2011
Ron Colombo, an associate professor of law at Hofstra Law School, said the biggest challenge for the CFTC, as is the case in many securities and corporate law cases is proving mensrea, which in Latin means guilty mind, and is viewed as one of the necessary elements of a crime.
“It is really hard to figure out what people intended to do and that is why [manipulation] is hard to prove,” said Colombo, whose expertise focuses on securities fraud.
“Can you prove that a person, for example, was selling stock to make the market price move or were they selling it because they thought it was the right move? It is hard to prove what is in the heart of hearts,” Colombo said. “The same exact conduct can be guilty or innocent based on intent.”
Read the full article at platts.com.