CFTC Whistleblower Lawyers
The Commodity Futures Trading Commission’s (CFTC) whistleblower program was created in 2010 following enactment of the Dodd–Frank Wall Street Reform and Consumer Protection Act. The program offers rewards of 10 to 30 percent for eligible whistleblowers whose information leads to the recovery of monetary sanctions of $1 million or more. In addition to its own whistleblower program, the CFTC offer rewards for recoveries in related actions brought by foreign futures authorities when certain conditions are met.
Our whistleblower attorneys can assist in evaluating your options and explain more about the CFTC whistleblower program. Eric Young was one of only seven commenters on the proposed regulation changes governing the CFTC whistleblower program. Eric was also a speaker at the Knowledge Congress live webinar on CFTC Financial Market Reforms.
Investigations and Enforcement Actions
The CFTC is actively engaged in complex investigations that often involve multiple companies within in a specific industry. These investigations can extend for years before a decision is made to pursue an enforcement action or close an investigation. Due to the length and scope of this process, the CFTC will accept information from whistleblowers even after the start of an investigation.
The identity of a whistleblower, as well as any information provided by the whistleblower, is kept confidential unless disclosure is required as part of a judicial or administrative action. Unlike the False Claims Act where the Department of Justice can decline to intervene in a qui tam action, the CFTC must prosecute an enforcement action once it files charges against a company.
The CFTC posts Notices of Covered Actions on its website for every case in which more than $1 million in sanctions is recovered. We regularly monitor these postings to identify the types of cases pursued by the CFTC. Among the most common types of misconduct that have been the subject of past CFTC enforcement actions are:
- Fraudulent misrepresentations
- Non-competitive trades
- Failure to maintain minimum capital requirements
- Fraudulent record-keeping
- Failure to segregate customer funds
- Failure to properly supervise employees in operations or trade processing
The CFTC is always eager to identify and prevent misconduct in new and developing areas. If you have information that has not been the subject of a past enforcement action, do not hesitate to contact McEldrew Young. Our attorneys will investigate your claims and determine whether there is sufficient evidence to submit a claim to the CFTC whistleblower program.