CFTC Whistleblower

Here’s What You Need to Know About Coming Forward Under the CFTC’s Whistleblower Program

The Commodity Futures Trading Commission (CFTC) accepts whistleblower complaints from private citizens who have information about possible violations of federal law impacting the US commodities and derivatives markets. Under the CFTC’s whistleblower program, whistleblowers who provide original information that leads to a successful enforcement action are generally entitled to a reward of 10% to 30% of the monetary sanctions collected.

We represent prospective whistleblowers nationwide. If you have questions about serving as a CFTC whistleblower, our attorneys can explain everything you need to know. We will help you make an informed decision about whether to come forward at no cost. If you decide to come forward, we will represent you on a contingency-fee basis, which means that our legal fees (if any) will be calculated as a percentage of any commodity whistleblower incentives we help you secure at the end of your case.

Statutory Violations Covered Under the CFTC’s Whistleblower Program

The CFTC relies heavily on whistleblowers to assist with its enforcement efforts. Recognizing the critical role whistleblowers play in these efforts, the CFTC administers a whistleblower rewards program that provides financial incentives to those who help it collect monetary sanctions from companies that have violated the law. Qualified whistleblowers may be able to obtain rewards in cases involving violations of federal laws including (but not limited to):

Commodity Exchange Act (CEA)

The Commodity Exchange Act (CEA) is the primary source of the CFTC’s enforcement authority. If you have information about a potential violation of the CEA or the regulations thereunder, you may be eligible to serve as a CFTC whistleblower. The CFTC accepts whistleblower complaints under the CEA involving violations including (but by no means limited to):

• Options and futures contracts traded on unregistered domestic platforms
• Market manipulation involving virtual currency futures traded in interstate commerce
• Accounting fraud, false reporting, and other forms of fraud involving virtual currencies, options, and futures contracts
• Fraudulent solicitations and trading violations
• Other forms of market manipulation, deception, and fraud

Reporting violations of the CEA to the CFTC typically involves filing a Tip, Complaint, or Referral Form (Form TCR). We help our clients prepare and file their Form TCRs, and then we work with the CFTC’s Division of Enforcement as it investigates our clients’ investigations and determines whether enforcement action is warranted.

Commodity Futures Modernization Act of 2000 (CFMA)

The Commodity Futures Modernization Act of 2000 (CFMA) overhauled the CEA and continues to serve as the basis for many of the CFTC’s enforcement actions targeting fraud in the regulated markets. If you have (or believe you may have) information about a violation of the CFMA, our attorneys can engage with the CFTC to determine its law enforcement interest and then file a whistleblower complaint on your behalf if warranted.

Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act)

Along with Commodity Exchange Act violations, the CFTC also accepts whistleblower submissions involving violations of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). While the Dodd-Frank Act is important for a variety of reasons, one of the law’s central tenets is market transparency. As a result, identifying fraud and deterring violations are top enforcement priorities for the CFTC, and many CFTC whistleblower cases involve Dodd-Frank Act claims as well.

Bank Secrecy Act (BSA), Foreign Corrupt Practices Act (FCPA), and Other Pertinent Federal Statutes

In addition to investigating violations of the federal commodities laws, the CFTC also investigates violations of the Bank Secrecy Act (BSA), Foreign Corrupt Practices Act (FCPA), and other pertinent federal statutes as warranted. If you are prepared to make a voluntary submission involving one of these other statutes, our attorneys can help you determine whether contacting the CFTC is the best approach, or whether it may make more sense to contact the Financial Crimes Enforcement Network (FinCEN) or the Department of Justice (DOJ) instead.

The Process of Serving as a CFTC Whistleblower

If you are prepared to report violations of the Commodity Exchange Act (CEA) or any other federal statute to the CFTC, it will be important for you to know what to expect if you decide to move forward. Here is a brief overview of the process of serving as a CFTC whistleblower:

1. Confirm Your Eligibility to Serve as a CFTC Whistleblower

The first step is to confirm your eligibility to serve as a CFTC whistleblower. Among other things, this will involve confirming that you will be the first to come forward with original information based on either independent knowledge or independent analysis. Our attorneys can provide a preliminary determination of your eligibility during your initial consultation, and we can engage with the CFTC before filing your Form TCR if warranted.

2. Assemble Your Documentation and Prepare Your Whistleblower Complaint

If you decide to come forward, the next step is to assemble your documentation and prepare your whistleblower complaint (i.e., your Form TCR). To be eligible for an award, you must strictly comply with the CFTC’s substantive and procedural filing requirements. Our attorneys are familiar with these requirements, and we can help you take the necessary steps to effectively assist with the CFTC’s enforcement efforts.

3. File Your Whistleblower Complaint with the CFTC

Once you’ve done everything necessary to prepare your complaint, the next step is to file your completed Form TCR and supporting documentation with the CFTC. While the CFTC accepts whistleblower complaints involving ongoing investigations in limited circumstances, in most cases, whistleblowers must be able to provide information that warrants a new investigation. This is another reason why it is important to engage a law firm that can communicate effectively with the CFTC on your behalf before you commit to starting the process.

4. Be Prepared to Work with the CFTC During Its Investigation

While not legally required, whistleblowers should generally be prepared to work with the CFTC during its investigation. The CFTC’s monetary incentives for whistleblowers are calculated based, in part, on the level of assistance they provide. CFTC whistleblower rewards generally range from 10% to 30% of the amount recovered when a whistleblower’s complaint leads to a successful enforcement action resulting in monetary sanctions paid by the targeted entity.

5. Submit Your Award Application (if Your Case is Successful)

If your whistleblower complaint is successful (i.e., it results in collection following a settlement or final judgment), you will need to submit an award application to the CFTC after it issues a Notice of Covered Action. Awards are paid out of the CFTC’s Customer Protection Fund. If you become eligible to receive an award, our attorneys will prepare and submit your application on your behalf, and we will work with the CFTC to secure an award that is commensurate with the level of assistance you voluntarily provided.

FAQs: Filing a Whistleblower Complaint with the Commodity Futures Trading Commission (CFTC)

Speak with a CFTC Whistleblower Lawyer in Strict Confidence

If you are interested in learning more about serving as a CFTC whistleblower, we invite you to contact us for a free, no-obligation consultation. To speak with an experienced CFTC whistleblower lawyer in strict confidence, please call 888-680-1745 or contact us confidentially online today.