Commodities 
Frauds

The Commodity Futures Trading Commission (CFTC) regulates the derivatives markets, enforcing the Commodity Exchange Act (CEA) to foster “open, transparent, competitive, and financially sound markets,” as well as to avoid systemic risk and protect market participants.

Derivatives markets initially focused on futures contracts in agricultural commodities (such as wheat, corn, and cotton), metals (such as copper, gold, and silver), and fuels (like crude oil, heating oil, and gasoline). Today, the CFTC focuses on markets in complex financial instruments, which include futures, options, and swaps related to stock and interest-rate indices, foreign currencies, digital or virtual currencies, and more.

Who does the CFTC regulate?

What kinds of commodities frauds can whistleblowers report?

Who can blow the whistle on commodities frauds?

How does the CFTC help to protect whistleblowers?

The CFTC is generally required to maintain the confidentiality of whistleblowers, and typically, the CFTC is able keep the identity of the whistleblower confidential throughout its investigation. Whistleblowers may also submit information to the CFTC anonymously, as long as an attorney represents them. The Dodd-Frank Act also protects CFTC whistleblowers from employer retaliation, including firing, demoting, suspending, threatening, harassing, or discriminating against whistleblowers who provide information to or assist the CFTC. Whistleblowers who are retaliated against for their whistleblowing may sue for reinstatement, back pay, and other damages. These protections apply whether or not a whistleblower receives an award, as long as the whistleblower had a reasonable belief that a violation of CFTC laws or regulations occurred or would soon occur. The CFTC may also bring enforcement actions against companies that attempt to stop whistleblowers from reporting misconduct.

Representative cases

Whistleblower Partners has handled a wide variety of whistleblower cases involving commodities frauds.  Those cases include cryptocurrency scams, violations of the CFTC’s swaps regulations, benchmark manipulation, and money laundering.

These descriptions of commodities frauds are general in nature and do not constitute legal advice. Commodities violations are complex and ever-evolving. The attorneys at Whistleblower Partners understand the complicated, constantly changing legal landscape and are happy to discuss any potential matter further.

If you would like more information or would like to speak to an attorney at Whistleblower Partners, please contact us for a confidential consultation.