The United States Commodities Futures Trading Commission (CFTC) is one of many government entities that function to enforce financial regulation. Coming into being in 1974, the CFTC works to oversee the futures investment market. Their goal is to ensure fair play within this vital part of the economy.

Sadly, a range of illegal activities can devastate markets in the future. As a result, the CFTC has broad powers to investigate and punish violations of the Commodity Exchange Act. The CFTC often relies on tips from whistleblowers to know where to begin an investigation.

A Columbia CFTC whistleblower lawyer could help individuals who are looking to serve as a whistleblower for the purpose of exposing violations of the Commodity Exchange Act. Attorneys could also help individuals looking to claim rewards under writs of Qui Tam.

Revealing Violations of the CEA

The Commodities Exchange Act is the federal law that controls the futures trading market in the United States. These futures comprise a large portion of the American economy, and as such, Congress has a marked interest in protecting this sector. To accomplish this goal, the CFTC created a reward program where concerned citizens can file complaints against violators of the CEA.

This information must meet specific criteria. According to 7 United States Code § 26, ordinary citizens can file a complaint that contains original information to the CFTC. This original information must consist of information that is not currently known to the CFTC or information that causes the CFTC to reopen an old case.

If this information leads to an investigation that results in penalties in excess of $1,000,000, the provider of the information is eligible for a reward under the rules of Qui Tam. This reward is paid at the rate of between ten and thirty percent of the total dollar value recovered in the case. The exact value of this reward is left to the discretion of the CFTC. An attorney in Columbia could help a person file a complaint against the CFTC.

Who Cannot Qualify as a Whistleblower for the CFTC?

While ordinary citizens are able to file a report with the CFTC, there are certain classes of people who are never eligible to receive an award. These include:

  • Employees of an appropriate regulatory agency
  • Members of the Department of Justice
  • Corporate entities
  • A registered futures association
  • Members of a law enforcement agency

In addition, people who are convicted of a criminal violation related to the act under investigation cannot collect the reward, even if they come forward upon their own volition. Finally, any failure to follow the CFTC’s procedures for making a report will disqualify the applicant from receiving a reward. A CFTC whistleblower lawyer in Columbia could help prospective whistleblowers determine if they might qualify for an award and to file the report in such a way as to maximize the potential for that award.

A Columbia CFTC Whistleblower Attorney Could Help Citizens to Do the Right Thing

Parties that cheat the financial system harm both other citizens and the country as a whole. The CFTC is dedicated to investigating these matters and issuing punishments when necessary. Yet even with their resources, they cannot identify every case of futures fraud. Most citizens have the power to serve as whistleblowers to expose this corruption.

The CFTC may provide a reward to people who provide information that leads to a conviction where the value of the fraud is in excess of $1,000,000. However, parties seeking a reward under a writ of Qui Tam must follow specific procedures, and only certain people qualify. A whistleblower attorney could help prospective whistleblowers to come forward to expose futures fraud. Contact a Columbia CFTC whistleblower lawyer today to learn how they could help you.

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