In 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act established the CFTC whistleblower program, offering cash rewards for information on swaps, futures fraud, options fraud, and other Commodity Exchange Act (CEA) violations.
Members of the public with knowledge of Commodity Exchange Act violations can collect a whistleblower award under the Commodity Futures Trading Commission (CFTC) whistleblower program.
The CFTC whistleblower program allows whistleblowers to report their information anonymously and offers protection from retaliation and harassment surrounding their report.
Over $300 Million in CFTC Whistleblower Awards
The Commodity Futures Trading Commission (CFTC) has paid out over $300 million to whistleblowers who report knowledge of Commodity Exchange Act (CEA) violations.
Recent CFTC Whistleblower Award Payments Include:
- $200 million CFTC Whistleblower Award: October 2021
- $9 million CFTC Whistleblower Award: July 2020
- $7 million CFTC Whistleblower Award: September 2019
- $45 million CFTC Whistleblower Award: August 2018
- $30 million CFTC Whistleblower Award: July 2018
Protecting CFTC Whistleblower Anonymity – Maximizing Awards
Eligible CFTC whistleblowers are entitled to receive between 10% and 30% of the total monetary sanctions in a CEA violations case. Our Experienced CFTC Whistleblower Attorneys help CFTC whistleblowers protect their anonymity and maximize the cash award. Call us today for a free and confidential consultation: 800.669.7782.
Top CEA Violations Reported by CFTC Whistleblowers
To protect U.S. commodity futures and options markets from risk, manipulation, and fraud, the Dodd-Frank law grants CFTC the authority to enforce the CEA. With information on CEA violations, the CFTC has the power to investigate and bring civil actions pursuing remedies and monetary penalties.
When an individual has information about a CEA violation—whether that violation is about to happen, has already happened, or is currently occurring—that individual can enter the CFTC whistleblower program and become eligible to collect 10%-30% of any government recovery.
Common CEA violations CFTC whistleblowers report include:
- Affinity schemes
- After-the-fact trading records containing fictitious data and submitted for clearing
- Attempted market manipulation
- Disruptive trading of swaps or futures
- Disruptive trading practices
- Failure to comply with audit trail and record-keeping rules
- Fictitious sales
- Fixing or manipulating benchmark rates (ISDAFIX, LIBOR, global foreign exchange rates)
- Forex trading scams
- Fraudulent solicitation
- Illicit trading strategies
- Improper handling of customer funds
- Improper segregation of customer funds
- Improper supervision and controls
- Inadequate trader oversight
- Market manipulation
- Misappropriation or mishandling of customer funds
- Noncompetitive and fictitious transactions
- Noncompetitive exchange of futures for opposite physical transactions
- Noncompetitive transactions
- Ponzi schemes
- Spoofing (entering an order with intent to cancel it before transaction completion)
- Spoofing (making offers or bids with an intent to cancel the offers or bids before execution)
- Submitting false customer account statements
- Submitting false statements to the National Futures Association or CFTC
- Unauthorized swap transactions
- Undercapitalization
- Unlawful off-exchange precious metals transactions
- Violating CFTC orders
- Violating position limits
- Wash sales
The CEA violations do not have to occur in the U.S. for a whistleblower to win a CFTC award. Eligible illegal activity can occur anywhere across the globe as long as it impacts the U.S. market in some way.
National CFTC Whistleblower Firm
Our Katers & Granitz CFTC Whistleblower lawyers work diligently to protect the informant's rights and anonymity while constructing a thorough and compelling report to maximize award amounts. Call the nation's premier CFTC Whistleblower Firm today for a private, no-fee consultation: 800.669.7782.
How Much Are CFTC Whistleblower Awards?
CFTC whistleblowers are eligible to collect between 10% and 30% of CFTC monetary sanctions when the sanctions exceed $1 million.
The CFTC calculates the actual award amount by weighing numerous factors, including:
- Amount involved in the CEA violations
- Significance of whistleblower's information
- Internal reporting of CEA violations
- Involvement of the whistleblower in the CEA violations
- Timeliness of the whistleblower's report
- Whistleblower's level of assistance in the case
Whistleblower payments are made from the CFTC's Customer Protection Fund. Both monetary remedies and penalty amounts are included in calculating the whistleblower award—meaning the whistleblower's award amount often far surpasses the actual amount involved in the reported CEA violations.
In addition, CFTC whistleblower award recipients are eligible to collect additional payment from any other successful administrative or judicial actions that rely on the CFTC whistleblower's information.
Our CFTC Whistleblower Lawyers have decades of experience navigating the complex, ever-shifting landscape of federal and state whistleblower laws. If you are aware of potential commodity law violations and want more information, contact Katers & Granitz for a free, confidential consultation at 800.669.7782.
Who Can Be A CFTC Whistleblower?
CFTC whistleblowers do not have to be U.S. residents or U.S. citizens. In addition, CFTC whistleblowers do not have to be "insiders" or associated with the entity allegedly violating the CEA.
The CFTC wants credible, detailed, and timely information. Any member of the public who meets the following criteria may qualify for a CFTC whistleblower award:
CEA Violations
The reported information must involve a CEA violation in some way. No financial harm is required to qualify for the whistleblower award. The CFTC wants information on CEA violations that may happen in the future, have already happened, or are currently underway.
Original Information
Your information on CEA violations must be original, meaning you obtained the information from a non-public source or deduced some information unknown to the CFTC from an independent analysis of publicly available information.
First Reporter
You must be the first to submit the information that will be used to assist the investigation and determine the award amount.
Voluntary Reporting
The information must be reported voluntarily, with no demand or request from government entities, investigations, or inspections.
Internal Reporting
In general, internal reporting by employee whistleblowers is not required. You can report directly to the CFTC without regard for internal compliance rules. If you have previously reported your information internally or to some other agency, you must report the information to the CFTC within the required time period of that other report to be eligible for a CFTC whistleblower award.
Successful Action
To be eligible to collect the award, your information must contribute to a successful $1 million + CFTC action against the alleged offender.
Those involved in supervision, auditing, compliance, or governance work are generally not eligible for CFTC whistleblower awards. However, exceptions apply in certain situations, such as situations involving failed internal reporting or substantial injury.
If the CEA violation is being investigated when the whistleblower comes forward, the whistleblower can still collect an award when their information adds to the investigation. If, for any reason, the CFTC denies the whistleblower award, the CFTC whistleblower may be eligible to appeal this decision to the U.S. Court of Appeals.
The Katers & Granitz CFTC Whistleblower Law Firm has years of experience helping heroic individuals bring fraud to light while preserving privacy and anonymity. We pursue all available damages for employer retaliation. If you have information suggesting commodity violations, contact us today for a free, confidential case consultation at 800.669.7782.
CFTC Whistleblower Anonymity and Job Protection
Whistleblowers can submit their report to the CFTC anonymously. Once your CFTC whistleblower attorney submits your report, the CFTC will keep your identity confidential and contact you through your attorney. In some cases, your identity may be made public after the settlement and award payment or, in related cases, instituted by other government agencies.
The CFTC Whistleblower Program also offers anti-retaliation protections for employee whistleblowers. If an employer retaliates against an individual for reporting concerns to the CFTC, or for considering reporting their concerns, that whistleblower can sue for job reinstatement, lost wages, and other associated damages.
Retaliatory acts prohibited by the CFTC whistleblower program may include job termination, demotion, denial of promotion, suspension, harassment, threats, or discrimination against those who plan to assist the CFTC with a potential CEA violation.
Top U.S. CFTC Whistleblower Law Firm
Our unique, proven legal strategy helps whistleblowers increase the odds of collecting a CFTC award. Our expert whistleblower lawyers are recognized nationwide for protecting whistleblower anonymity and organizing and presenting original information in a way that increases the potential for a productive investigation and successful CFTC action.
At Katers & Granitz, our expert CFTC whistleblower lawyers are dedicated to protecting client privacy and preparing highly compelling, substantiated reports for CFTC review. Call us today at 800.669.7782.