Commodity Exchange Act Whistleblower Rewards

 

The Commodity Futures Trading Commission’s whistleblower program has been the quiet sibling of the Securities and Exchange Commission’s whistleblower program since the Dodd-Frank Act created each in 2010. Complaints to the US Commodity Futures Trading Commission (CFTC) received in 2017 involved activities such as virtual currency trading, spoofing, market manipulation, false reporting, misrepresentations to customers regarding the handling of their accounts, fraud involving foreign currency exchanges, Ponzi schemes and other off-exchange investment scams involving futures. The CFTC has even recently created a $100,000 bounty to encourage whistleblowers coming forward in exposing cryptocurrency “pump-and-dump” schemes. 

Under the CFTC Whistleblower Program:

• The CFTC pays monetary awards to eligible whistleblowers who voluntarily provide the CFTC with original information about violations of the Commodity Exchange Act (CEA) that leads the CFTC to bring a successful enforcement action resulting in monetary sanctions exceeding $1,000,000.

• The CFTC pays monetary awards to eligible whistleblowers whose information leads to the successful enforcement of a Related Action brought by another governmental entity and certain other entities that are based on original information voluntarily submitted by a whistleblower to the CFTC that led to the successful enforcement of an action brought by the CFTC.

• The total amount of an award for an eligible enforcement action is between 10% and 30% of the amount of monetary sanctions collected in the CFTC's enforcement action or a Related Action. If multiple whistleblowers are granted awards in an action, the total award amount is still limited to between 10% and 30% of the amount of the monetary sanctions collected.

• Whistleblowers have certain protections regarding confidentiality of their identity.

• Employers may not take any action to impede would-be whistleblowers from communicating directly with the Commission’s staff about possible violations of the Commodity Exchange Act (CEA), including by enforcing, or threatening to enforce, a confidentiality agreement or pre-dispute arbitration agreement with respect to such communications. Nor may employers retaliate against whistleblowers for reporting violations of the CEA—as through discharge, demotion, suspension, threats, harassment, direct or indirect, or any other discrimination against a whistleblower in the terms and conditions of employment because of any lawful act done by the whistleblower.

• A whistleblower who has been retaliated against has the right to sue an employer in federal court. In addition, the CFTC has authority to enforce the anti-retaliation provisions of the CEA by bringing an enforcement action or proceeding against an offending employer.

Your information could lead the Commission to open a new investigation, re-open a closed investigation, or pursue a new line of inquiry in an on-going investigation. This could result in a successful enforcement action, and you may be eligible for an award if your information matches certain criteria. If you have information which could interest the CFTC, please fill up our encrypted confidential form and our partners will review your case for free. Our informant service helps connect crime whistleblowers with legal representation. Don't go at it alone. With Whistleblower Informant you will get the help you require. Let us review your eligibility for monetary rewards by submitting the information to our specialists. We assist truth tellers in shinning lights on whoever violates any types of securities laws.

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