The commodities and futures market is what many people imagine when they think of Wall Street. The iconic images of traders on the floor swapping gold, oil, and agricultural products is a mainstay of the American economy.
For decades, this forum was a wide-open place for economic activity. However, the need for regulation resulted in the creation of the Commodities Futures Trading Commission (CTFC) in 1974. This agency works to enforce the law and regulations that control the futures market and can severely punish individuals and companies that violate the law.
In many situations, the CFTC relies on tips from whistleblowers to spark investigations. A Lexington CFTC whistleblower lawyer could help you if you want to come forward with information. This can include protecting you from any potential retaliation as well as working to collect rewards through writs of Qui Tam.
The Commodity Exchange Act is a collection of federal laws that define crimes in the futures market. Some of the most visible examples of these prohibitions include:
The CFTC is responsible for investigating and punishing violations of these laws. To accomplish this goal, the CFTC invites private citizens and employees of trading houses to come forward as whistleblowers. Successful investigations can help the government to recover client funds as well as discourage other entities from participating in this activity in the future. An experienced Lexington CFTC whistleblower attorney could provide more information about the Commodity Exchange Act and the activities that may comprise violations of the law.
The financial companies that operate in the futures market are often worth billions of dollars. With this amount of money moving around, it is understandable that people may be hesitant to serve as whistleblowers. They may fear retaliation in the workplace or their private lives. One small comfort can be that retaliation after serving as a whistleblower or participating in a CFTC investigation is illegal under federal law. A Lexington CFTC whistleblower attorney could help to explain whistleblower protections and act to demand appropriate remedies if retaliation does occur.
Another way in which an attorney may be able to help is in seeking out rewards from the federal government. Because the CFTC often relies on whistleblowers to learn about futures law violations, the CEA also authorizes the CFTC to offer rewards for valid information. People can notify the government that they are seeking a reward by filing a writ of Qui Tam.
These rewards can often be between ten and 30 percent of the value recovered in the case. However, the information must be new to the government. It must also spur an investigation that leads to a conviction that recovers more than $1,000,000 in value. Working with a Lexington CFTC whistleblower lawyer could help individuals to determine whether they may qualify for a reward.
The Commodities Futures Trading Commission has broad powers to investigate apparent violations in the futures market. Companies that violate these laws can face heavy fines and lose their licenses. At the same time, individuals may even face criminal prosecution.
As harsh as these penalties can be, the CFTC often only hears about illegal activity through whistleblower reports. This dependence is so significant that the CFTC offers rewards for people who come forward. This can often be between ten and 30 percent of the value recovered in the case.
A Lexington CFTC whistleblower lawyer may be able to help you if you have information about illegal activity in the futures market. They could take the lead to file a report, demand a reward, and protect you from potential retaliation. Call today to get started.