Commodity Whistleblowers Take Home More than $1.8 Million

Fraudulent practices in the commodity market can lead to unjust gains and losses in the millions of dollars. Given the complex nature of this fast-moving field, it can also be very difficult to discover when someone is acting improperly. In an effort to discourage and catch misconduct, the Commodity Futures Trading Commission (CFTC) has a whistleblower program that enables individuals to report wrongdoing anonymously. When the government collects a judgment or settlement of at least $1 million in response to the fraudulent activity, the whistleblowers who provided the initial tip can receive a monetary award as well. 

Congress created the CFTC whistleblower program as part of the Dodd-Frank Act of 2010. Dating back to when the first award was issued in 2014, whistleblowers have brought home nearly $400 million in cases that garnered more than $3 billion for the federal government. In a December press release, the CFTC announced that two individuals received an award totaling $1.8 million. 

Though the CFTC did not provide information regarding the specific case in order to protect the people who provided the tip, there are several common types of fraud associated with commodity transactions, such as:

  • Market manipulation — Cornering the market on a particular commodity, making phony trades and other practices are used by unscrupulous parties to manipulate prices.

  • Misrepresentation — Ponzi schemes and false statements about accounts are just two examples of misconduct that might be caught by whistleblowers.  

  • Improper recordkeeping practices —Accurate information is essential to the proper operation of the commodities market. Deceptive or sloppy recordkeeping could inflict harm on unsuspecting parties. 

Individuals who witness possible fraud manipulation, or other violations in commodities, futures, swaps, or related markets, should preserve relevant documents and communications. From there, you should speak with a whistleblower attorney as soon as possible. Should someone report the fraudulent activity before you, it is likely that you will be prevented from receiving any monetary award. 

Kardell Law Group provides strong advocacy for clients in a full range of whistleblower actions, including CFTC cases. To discuss your particular situation and whether you might be eligible for an award amounting to between 10 and 30 percent of the government’s recovery, please call or contact us online.