Outcome at a glance
The Commodity Futures Trading Commission's case against John Patrick Gorman III concluded in September 2026 with both market-manipulation claims dismissed with prejudice.
The Consent Order contains no findings or conclusions adjudicating the dismissed manipulation and attempted-manipulation claims and imposes no restriction on Gorman's ability to trade or work in financial services.
The remaining count concerned statements Gorman made to the CFTC during its 2019 investigation. Gorman resolved that count without admitting the Consent Order's substantive findings or conclusions, apart from jurisdiction and venue.
The resolution included a $90,000 civil monetary penalty and an injunction requiring compliance with existing law concerning materially false or misleading statements to the CFTC.
The resolution in brief
| Market manipulation | Dismissed with prejudice |
|---|---|
| Attempted market manipulation | Dismissed with prejudice |
| Trading restriction | None |
| Employment restriction | None |
| Senior/supervisory-role restriction | None |
| Monitoring, certification or reporting obligation | None |
| Civil monetary penalty | $90,000 |
The trading claims were dismissed with prejudice
The CFTC originally alleged that Gorman attempted to manipulate the market for 10-year U.S. dollar swap spreads in connection with a February 2015 transaction involving the Japan Bank for International Cooperation ("JBIC").
Those allegations formed the central trading claims in the case.
The final Consent Order expressly provides:
“Counts I and II of the Complaint be dismissed with prejudice.”
No finding of market manipulation or attempted market manipulation was made against Gorman.
No trading or employment restriction
The Consent Order contains:
- no trading ban or restriction;
- no employment ban or restriction;
- no senior or supervisory-role restriction;
- no ongoing monitoring, certification or reporting regime; and
- no limitation on Gorman returning to work in financial markets.
The order's substantive injunctive relief instead concerns materially false or misleading statements to the CFTC.
No admission of the Consent Order's substantive findings or conclusions
The settlement did not require Gorman to admit the Consent Order's substantive findings or conclusions.
Paragraph 12 of the Consent Order provides that Gorman:
“Consents to the entry of this Consent Order without admitting any findings or conclusions in this Consent Order, except as to jurisdiction and venue, which he admits.”
The Consent Order contains no restriction preventing Gorman from publicly denying the allegations.
The case was resolved without a trial on the merits or further judicial proceedings.
What the remaining count concerned
The count that was resolved rather than dismissed concerned statements made to the CFTC during its 2019 investigation, several years after the underlying 2015 trading.
The Consent Order contains findings and conclusions concerning statements made during the investigation. Gorman did not admit those substantive findings or conclusions.
The resolution included a $90,000 civil monetary penalty and an injunction requiring compliance with existing law concerning materially false or misleading statements to the CFTC.
JBIC continued selecting Nomura after the transaction and after the CFTC filed its case
JBIC's subsequent conduct is also notable.
JBIC continued selecting Nomura for major global bond issuances after the February 2015 transaction. More significantly, it continued doing so after the CFTC publicly filed its case in February 2021.
On April 9, 2021 - approximately two months after the CFTC filed its Complaint - JBIC announced a $4 billion global dollar bond issuance. JBIC's own announcement identifies Nomura International plc as a Joint Lead Manager on both the $1 billion three-year tranche and the $3 billion ten-year tranche.
Earlier court ruling narrowed the CFTC's case
The litigation had already produced significant dismissals before the final settlement.
In March 2023, the District Court rejected the CFTC's claim based upon statements made to JBIC during the pricing process on extraterritoriality grounds.
The Court noted that Gorman was in Japan when he quoted the swap price, the relevant Nomura entity was Japanese, JBIC was Japanese, and the transaction was governed by Japanese law. The Court concluded that the alleged statements lacked the necessary connection to the United States.
The Court separately rejected the CFTC's theory that Gorman had a duty to disclose his trading activity to other market participants.
Other manipulation theories survived the motion-to-dismiss stage. Those remaining trading claims were ultimately dismissed with prejudice in the final resolution.
Final outcome
After more than five years of litigation, the case concluded with a materially narrower result than the allegations with which it began.
The CFTC's two market-manipulation claims were dismissed with prejudice.
Gorman did not admit the Consent Order's substantive findings or conclusions, apart from jurisdiction and venue.
The order imposes no trading restriction.
It imposes no employment restriction.
It imposes no senior-role or supervisory restriction.
Primary sources
1. Entered Consent Order - September 1, 2026
The final judicial order resolving CFTC v. Gorman, including dismissal with prejudice of Counts I and II, the non-admission provision, the $90,000 civil monetary penalty and the scope of the injunction.
2. CFTC Release 9291-26 - September 1, 2026
The CFTC's public announcement of the resolution, $90,000 civil monetary penalty and dismissal with prejudice of the two trading counts.
3. Gorman II - March 24, 2023
The District Court decision addressing the CFTC's manipulation, misstatement and disclosure theories.
4. Gorman I - February 2022
The District Court's earlier decision setting out the CFTC's allegations and the structure of the JBIC transaction.
5. CFTC Complaint - February 1, 2021
The CFTC's original three-count case against Gorman.
6. JBIC - Global Dollar Bond Issuance, April 9, 2021
JBIC's public announcement identifying Nomura International plc as Joint Lead Manager on its $4 billion issuance approximately two months after the CFTC filed the case.
7. CFTC Release 9247-26 - June 3, 2026
The CFTC's public announcement rescinding its policy against settlements in which defendants publicly deny the Commission's allegations.