What It Covers
The CFTC whistleblower program was created by Section 748 of the Dodd-Frank Wall Street Reform and Consumer Protection Act that went into effect on July 21, 2010. It provides rewards and protections to whistleblowers who report fraud and misconduct in the commodities futures trading markets. This includes such conduct as fraudulent representations, disruptive or manipulative trading activity, use of non-registered personnel, and illegal trading based on certain types of confidential information. The statute prohibits retaliation against employees who report commodities trading fraud.
How It Works
A whistleblower must complete and submit Form TCR to the CFTC through its online portal or by mail or fax. The information must be submitted under penalty of perjury. If you submit the information anonymously, you must provide contact information for an attorney if you wish to collect an award. If a matter reaches a final judgment or order resulting in more than $1 million in monetary sanctions, the CFTC posts a Notice of Covered Action. Following the posting, a whistleblower may seek a monetary award.
If the amount recovered exceeds $1 million, a whistleblower may receive a payment of between 10% and 30% of monetary sanctions collected as a result of an action brought by the Commission depending on the quality of information provided. A whistleblower must disclose his or her identity to the CFTC before a determination of eligibility to receive an award.
Who Can Be a CFTC Whistleblower?
A whistleblower can be a corporate officer or insider, a trader or market observer, an investor or a fraud victim. A whistleblower must provide original information to the CFTC about illegal conduct related to commodities futures trading. a violation of federal securities laws or regulations. This means that the information must be known independently and not be available from a public source. People who have legal, compliance, audit, supervisory, or governance responsibilities are ineligible for awards under this statute.