Search Site
Menu

The CFTC is Accepting Claims for Whistleblower Awards in a $16 Million Case Involving Kraft Foods

The U.S. Commodity Futures Trading Commission (CFTC) issued a Notice of Covered Action (NCA) on May 18 for action taken against Kraft Foods Group, Inc. and Mondelez Global LLC. The companies are charged with manipulating the market, specifically with regard to prices of cash wheat and wheat futures.

With the NCA issued, whistleblowers are able to submit award claims for that enforcement action. The two companies will pay $16 million in penalties.

Case background

According to the CFTC, Kraft and Mondelez developed and executed a strategy to buy $90 million of wheat futures in December 2011 in response to particularly high cash wheat prices that summer. This purchase amounted to a six-month wheat supply. However, the companies allegedly never intended to actually receive delivery of this wheat, and instead developed this strategy as a means of artificially adjusting the market by encouraging lower cash wheat prices.

Due to this scheme, Kraft and Mondelez were reported to have earned more than $5.4 million in profits.

With an NCA in place, the CFTC has not determined any whistleblower contributed to the success of the case. Once an NCA is posted, individuals have 90 days to apply for an award by submitting a form to the agency.

To date the CFTC has awarded more than $330 million to whistleblowers.

For more information about filing a CFTC claim, including after the agency posts an NCA, contact an experienced whistleblower lawyer at Kardell Law Group.

Honors
Our Office
  • Dallas Office
    4514 Cole Ave
    #600
    Dallas, Texas 75205
    Phone: 214-306-8045
    Fax: 469-729-9926
Testimonials
  • "Steve Kardell was terrific in representing me in some very adversarial discussions with Citigroup and also later represented me in my testimony before the Financial Crisis Inquiry Commission."  -Richard Bowen, Citigroup Whistleblower

  • "Incredible knowledge of employee related concerns and equally brilliant knowledge of health care regulations, standards of practice. I would recommend this firm to anyone."  -V.B.

  • "Reaching out to Steve Kardell was the best decision I made. His ability to provide immediate insight and direction was very powerful, and a huge relief during a very stressful time period. For anyone struggling with a whistleblower situation, I would highly recommend at least speaking with Steve. After a 10 minute call with him, I had a better understanding of what I was dealing with. Even better, he gave me some immediate hope. In the end Steve did a better job than I thought was possible. Steve was able to get in contact with people in my organization, that I didn’t have access to. Because of his years of experience, he already has contacts in many organizations in Dallas. The entire situation was handled peacefully. I was impressed by his ability to “keep the peace”–rather than creating a battle with the organization. The reason I didn’t reach out to a lawyer initially, was because I thought it would mean an immediate end to any hope of a positive relationship with the company. Steve was able to address my concerns, and in the end I was able to continue to work for them."  -KS

  • "Never thought my career would end like it did after 30 years of service. I was part of the first round of the so called reduction of force. I asked myself how can I be part of this with 30 years of seniority. How did they pick these 90 plus employees? Now, the culture of this organization made you question every decision they made. It wasn’t what you knew it’s was a culture of who you know. Nonetheless, I did not accept their severance package. I immediately starting looking for an attorney who would take on my case. After the initial call to Steve I had hope again. He was open and honest about everything and reassured me he would do his best for me, and he did. I had an awesome outcome. Thanks Steve you’re the best."  -S.S.

FOLLOW US
Facebook Twitter Linkedin RSS Feed JD Supra