Dodd-Frank Act & the CFTC Whistleblower Program - Jeff Newman Law

The Dodd-Frank Act also created a new whistleblower program at the Commodities Futures Trading Commission (CFTC). The CFTC whistleblower program is much like the SEC whistleblower program, except that its purpose is to encourage people to come forward with information concerning violations of the Commodity Exchange Act, which governs trading in derivatives, including futures, options, and swaps. Violations of the CEA may include:

  • Fraud such as fraudulent solicitation, misappropriation of customer funds, and issuing false customer account statements;
  • Market manipulation and disruptive trading practices; and
  • Trade practice violations such as wash sales, unauthorized swap transactions, and creating after the fact trading records containing fictitious information.

Under the CFTC whistleblower program, a whistleblower may be entitled to an award of between 10% and 30% of the amount collected by the government if he or she provides information that leads to the recovery of at least $1 million. The CFTC whistleblower program also has confidentiality and anti-retaliation provisions that are similar to those of the SEC whistleblower program.