CFTC Reporting Fraud
The United States Commodity Futures Trading Commission (CFTC) is responsible for regulating the futures and option markets.
One way the CFTC does this is by requiring futures commission merchants (FCMs), exchanges, foreign brokers, clearing members, and traders to report market data, such as aggregate positions and trading activity, futures delivery notices, prices, purchases and sales, exchanges of futures for cash, public data on trading volume, and open contracts, among other things.
When these entities either willfully fail to report the information required by the CFTC, or disclose information that is knowingly false or inaccurate, they are committing reporting fraud. If you believe you are aware of possible reporting fraud, you should reach out to an attorney and report your tip to the CFTC. Doing so could open up the door to a potential CFTC whistleblower award.
The CFTC Whistleblower Program
The CFTC whistleblower program was designed to give would-be whistleblowers the opportunity to report Commodity and Exchange Act violations and be financially rewarded for doing so. To win an award, the whistleblowers tip must be both original and voluntary and lead to the CFTC taking enforceable action against the violating person or persons.
The CFTC will need to recover monetary sanctions that exceed $1,000,000 for the whistleblower to be eligible for an award. If these requirements are met, the whistleblower could be awarded 10 to 30 percent of however much the CFTC is able to recover.
Anti-Retaliation Protections for Whistleblowers
Under the CFTC whistleblower program, employers are prohibited from retaliating against whistleblowers. This includes demoting, terminating, harassing, threatening legal action, or other types of discrimination. If your employer retaliates against you, you have the option of bringing a retaliation lawsuit against your employer in federal court.
Additionally, the CFTC will impose sanctions of their own, which might include monetary penalties or other enforceable actions against the employer in question. The CFTC does allow potential whistleblowers to remain anonymous when reporting their tip as long as they are represented by an attorney.
Get Help from a CFTC Whistleblower Lawyer
If you believe you have information about CFTC reporting fraud and you want to blow the whistle on this violation of the Commodity and Exchange Act, speak with a CFTC whistleblower lawyer at Meissner Associates today.
Our firm offers would-be whistleblowers a confidential tip evaluation to discuss your tip prior to reporting to the CFTC. You can schedule your evaluation by calling our office at 1-866-764-3100 or by completing the secure contact form below.