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.
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.