SEC Whistleblower Lawyer Blog
The Commodities Futures Trading Commission (CFTC) has announced an award of nearly $4 million to two whistleblowers who notified the agency of a company’s misconduct.
Both individuals provided sufficient original information to lead to a successful enforcement action. Whistleblower #1 initially notified the CFTC of this misconduct and supplied key information.
The CFTC opened its investigation based on the information submitted by Whistleblower #1. Whistleblower #2 also provided additional information which included the admission that the misconduct was ongoing and continuing. While Whistleblower #2 also provided “substantial assistance,” they also “unreasonably delayed” giving information to the CFTC. This led to a reduction of the award amount, which was not disclosed.
Three additional whistleblowers were denied an award and did not seek reconsideration by the CTFC’s Claims Review Staff (CRS.) Claimant #3’s information was already in the record with no original information submitted.
What The CFTC Does
The CTFC, which regulates the commodities market, is an independent federal agency responsible for regulating all US derivative markets, including:
- Futures contracts
- Options
- Swaps
The CFTC oversees the market’s participants, such as:
- Designated contract markets
- Swap execution facilities
- Derivatives clearing organizations
- Swap dealers
The CFTC’s primary mission is to promote the integrity, vibrancy, and resilience of these markets through sound regulation. The CFTC plays a crucial role in enabling businesses across sectors—from agriculture to manufacturing—to manage commercial risks by providing a regulated platform for hedging against price fluctuations, currency exchange rates, and other economic uncertainties.
Like the SEC’s whistleblower program for violations of federal securities laws, the CFTC has a whistleblower program that encourages people to voluntarily report violations of the Commodity Exchange Act. A CFTC whistleblower can receive a financial award if their information leads to an enforcement action that collects a sanction of over $1 million.
Retaining Experienced CFTC Whistleblower Attorneys
CFTC whistleblowers help everyone by notifying the government of conduct that harms the investing public, while also earning financial compensation for themselves. Hiring experienced counsel may greatly increase the probability that an investigation will be initiated based on your information. If you wish to remain anonymous, you must be represented by an attorney, who will submit everything on your behalf.
Silver Law Group and the Law Firm of David R. Chase jointly have experienced CFTC and SEC whistleblower lawyers, including a former SEC Enforcement attorney on the team, so you will always have guidance throughout the process. Our attorneys can help you if you have information regarding securities or investment fraud, violations of federal securities laws, false filings, market manipulation, or other misconduct. You must provide timely, credible, and original information or analysis to be eligible.
Contact us through our online form or at (800) 975-4345 for a consultation. Our attorneys work on a contingency fee basis. This means that it costs you nothing to hire us, and we collect our fees only if you receive a bounty. Because we get paid when you do, we have the incentive to help you collect the maximum award available.