Report Commodity Pool Operator Fraud

Do you have evidence of commodity pool fraud or suspect a problem with a forex or other investment pool? Our whistleblower attorneys can help you report it to the U.S. Government. The CFTC has pursued enforcement actions against a number of commodity pool operators in recent years and will investigate your whistleblower information.

Individuals can report their information to the whistleblower program at the Commodity Futures Trading Commission (CFTC). Our attorneys will evaluate your evidence and represent you throughout the process, from filing Form TCR to your award claim, if necessary. If the CFTC successfully recovers $1 million or more because of your tip, you may receive between 10 to 30 percent if you are deemed eligible for a reward. For a free, confidential initial consultation:

Commodity Pool Fraud

Unfortunately, some pool operators are violating the law. They are unregistered, have engaged in misleading or false advertising, running a ponzi scheme or misappropriating the funds raised.  Pool operators can violate the commodities laws in these and a number of other ways.  They are not allowed to operate without the appropriate registration of their pool.  They are not permitted to withdraw money for non-pool expenses and or take fees to which they are not entitled.

Employees of the pool, third-party professionals engaged by the operators, competitors and, eventually, investors may eventually realize that the company is violating the Commodity Exchange Act or CFTC rules. By reporting their information to the CFTC, these individuals can help stop the fraud against investors.

About Commodity Pools

Commodity pool operators raise funds from a number of investors to pool the funds together and trade futures and options.   Commodity pool operators and commodity trading advisors must register as intermediaries unless they are exempt. They face numerous other requirements in order to operate, including distribution of a disclosure document, periodic account statements, audited annual financial reports and keep records regarding the pool’s participants, transactions and operations. Many firms offering investments in commodity pools use the resulting funds to trade in the foreign exchange (“Forex” or FX) market.

For Potential Investors

The CFTC has issued a commodities fraud advisory about commodity pool fraud. The CFTC recommends that potential investors in these operations contact the National Futures Association or the CFTC to check the company’s registration, background and disciplinary history. It also recommends asking about fees and commissions charged, copies of account statements provided to the operator from registered trading firms, and the pool’s risk disclosure documents and performance history.

The Benefits of Reporting

The Right Thing to Do

Whistleblowers have become an increasingly important tool for law enforcement agencies.  Without tips from individuals with non-public information, a company’s violation of the securities laws and fraud against investors may go unnoticed for years.  In order to facilitate disclosures, the CFTC allows anonymous reporting and takes measures to protect the identity of its whistleblowers.

Whistleblower Rewards

The CFTC will pay eligible whistleblowers a reward of between 10 and 30 percent of the amount recovered from enforcement actions over $1 million.  Their whistleblower program was authorized by the Dodd-Frank Act in 2010.  The commodities regulator began taking tips in 2011.

Retaliation Protections

Dodd-Frank amended the Commodity Exchange Act to allow whistleblowers retaliated against by their employer to sue in Federal court and receive compensation for the wrongful acts against them.  An individual becomes eligible for these protections when they have submitted Form TCR to the CFTC’s whistleblower office.

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