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
  • Misappropriation
  • Embezzlement
  • 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 Purtell. Our attorneys will investigate your claims and determine whether there is sufficient evidence to submit a claim to the CFTC whistleblower program.

Bitcoin and Other Cryptocurrencies

The Commodity Futures Trading Commission (CFTC) regulates and oversees futures transactions involving digital currencies such as Bitcoin. The CFTC and the Department of Justice are investigating whether traders are manipulating the price of Bitcoin and other digital currencies. The investigation is focused on illegal practices that can influence prices. One area of concern for government regulators is a practice known as spoofing where fraudsters flood the market with fake orders in order to induce other traders to buy or sell.

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ICE Swap Rate – ISDAfix

The Intercontinental Exchange (ICE) Swap Rate, formerly known as ISDAfix, is the worldwide common reference rate value for fixed interest rate swap rates. ICE is the parent company of the New York Stock Exchange and various other exchanges and markets around the world. ICE’s futures exchanges and clearinghouses provide risk management and capital efficiency for global commodity and financial markets.

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Off-Exchange Precious Metals

The Commodity Futures Trading Commission (CFTC) has brought enforcement actions against a number of individuals and companies for violations of the law since it went into effect in 2010. If you have evidence of illegal, off exchange transactions in gold, silver, platinum, or palladium, McEldrew Young Purtell attorneys can assist you in reporting to the CFTC whistleblower office. The CFTC’s whistleblower program pays a reward of 10 to 30 percent to eligible individuals when $1 million or more in monetary sanctions is recovered.

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Commodity Pool Fraud

A commodity pool is a private investment vehicle that combines investor contributions for purposes of trading in the futures and commodities markets. The contributions of multiple investors are pooled into a single fund designed to gain leverage in trading in order to maximize profit potential. Commodity pools are regulated in the United States by the Commodity Futures Trading Commission (CFTC) and the National Futures Association. The CFTC actively investigates whistleblower claims and has brought a number of enforcement actions against commodity pool operators in recent years. 

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Position Limit Violations

The Commodity Exchange Act authorizes the Commodity Futures Trading Commission (CFTC) to impose limits on the size of speculative positions in futures markets in order to prevent excessive speculation that can cause unreasonable or unwarranted price fluctuations. The CFTC may pursue an enforcement action if you provide information through its whistleblower program. The attorneys at McEldrew Young Purtell represent individuals who report misconduct in the commodities and derivatives market. Under the Dodd-Frank Act, the CFTC is authorized to pay eligible whistleblowers a reward of 10 to 30 percent when they report information about violations of the Commodity Exchange Act or CFTC rules that results in a recovery of $1 million or more in monetary sanctions.

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Commodity Price Manipulation

The Commodity Futures Trading Commission (CFTC) actively investigates price manipulation in commodities markets. The Chairman of the CFTC emphasized that the commission “will carefully consider all available actions to help ensure market integrity and combat manipulation or fraud.” If you have information about a company or group of traders engaged in price fixing or manipulation, the whistleblower attorneys at McEldrew Young Purtell can assist you with all aspects of the CFTC’s whistleblower program, from submission of a claim to filing an application for an award.

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