Global financial markets, the securities industry, and commodity futures are industries that have a high risk of fraud. Because government agencies aren’t always able to uncover fraud before it is too late, they rely on whistleblowers to come forward and report tips. These whistleblowers are often employees, colleagues, friends, and even family members of those who commit fraud in the financial markets.
But becoming a whistleblower can be dangerous. The Commodity Futures Trading Commission (CFTC) recognizes this and allows whistleblowers to report their tips anonymously when they are represented by an attorney. Furthermore, they can reward many whistleblowers who have the courage to come forward and help put a stop to these schemes.
Below, we go into further detail about what the CFTC is responsible for, why government agencies need whistleblowers, and how the reward process works for whistleblowers who meet the requirements.
The CFTC is a government agency that is focused on the regulation of futures, swaps, options, derivatives markets, and commodities. Energy and environmental markets, agriculture, global markets, and technology are the CFTC’s primary focus. As with all financial markets, there are opportunities for fraud to occur.
When violations of the Commodity Exchange Act (CEA) occur, the CFTC can take action against the fraudulent party or parties in question. This is very similar to how the U.S. Securities and Exchange Commission (SEC) handles securities violations.
However, neither agency would be as successful as they are in taking enforcement actions if it weren’t for the bravery of whistleblowers all over the world.
The CFTC would be unable to impose sanctions and take other enforcement actions if they didn’t have whistleblowers who were willing to come forward. These individuals often discover schemes and other fraudulent activities in their work with specific individuals, companies, or organizations.
Blowing the whistle is risky for the whistleblower, and when the CFTC’s requirements have been met, the whistleblower could be awarded handsomely for their efforts in coming forward. The criteria that a CFTC whistleblower would need to meet in order to qualify for an award include:
In addition, the CFTC must take enforceable action, and the CFTC must recover at least $1 million.
If all requirements have been met, then the whistleblower could be entitled to an award of as much as thirty percent of the recovered sanctions. Your lawyer can help you throughout the whistleblowing process so you are kept informed as to the status of your whistleblower tip.
Although coming forward can be intimidating, doing so may ultimately be the right thing to do, and the CFTC could reward you accordingly. If you have information regarding CFTC violations and you aren’t sure where to turn for help, contact a respected lawyer at Meissner Associates.
Schedule your confidential tip evaluation when you fill out the secure contact form included below or call our office at 1-866-764-3100.