From our recent survey of top SEC fraud recoveries this past year, we found it was not an especially standout year for the securities regulator in terms of big-dollar hauls. It was not necessarily a banner year for the Commodity Futures Trading Commission (CFTC) either in terms of its fraud recoveries. Only five of them brought in 9-digit amounts or higher.
But the Number 1 hit -- the eye-popping $12.7 billion...
CFTC Issues Annual Whistleblower Report Highlighting Continued Success of CFTC Whistleblower Program
Posted 11/22/24
As it is required to do every year, the Commodity Futures Trading Commission (CFTC) just released its Annual Report on the CFTC Whistleblower Program, which provides rewards and protections to whistleblowers providing the agency with information on Commodities Exchange Act violations. The 2024 Report covers the period from October 1, 2023 through September 30, 2024 and as with its previous annual reports, details...
Swiss-Based Commodities Trading Company Pays $661 Million for FCPA Violations
Posted 03/4/24
Last Friday (March 1), the Department of Justice (DOJ) announced that Swiss-based international commodities trading company Gunvor S.A. pleaded guilty and agreed to pay roughly $661 million to settle charges of violating the Foreign Corrupt Practices Act (FCPA). The DOJ's action stemmed from Gunvor's scheme to bribe Ecuadorean officials to secure business with Ecuador’s state-owned oil company Petroecuador.
The...
Yesterday (February 15), the Commodity Futures Trading Commission (CFTC) named Brian Young as the new director of the CFTC’s Whistleblower Office. In doing so, the agency officially filled the vacancy left when former director Chris Ehrman stepped down in July.
Mr. Young has big shoes to fill as under Director Ehrman's tenure, the CFTC saw tremendous growth in its Whistleblower Program, which provides sizable...
With Valentine's Day upon us, the Commodity Futures Trading Commission (CFTC) last week (February 8) issued an Advisory Alert warning for those seeking romance to tread carefully on dating apps and social media. Especially when it comes to strangers asking for financial support or giving investment advice.
The CFTC urged particular caution with promotions for cryptocurrency investments because of the growing risk...
It was an active year for fraud enforcement at the Securities and Exchange Commission (SEC) and Commodities Futures Trading Commission (CFTC). Though by no means was it a record year for either regulator in terms of big-ticket wins. Aside from the CFTC's $1.7 billion recovery from South African crypto company Mirror Trading for foul play with foreign currency transactions, the balance of the Top-10 recoveries was...
Top Ten SEC and CFTC Whistleblower Awards for 2023
Posted 01/16/24
It was a relatively quiet year for the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) in their payout of whistleblower awards under their respective whistleblower programs. Under the SEC Program and CFTC Program -- both enacted under the Dodd-Frank Wall Street Reform and Consumer Protection Act -- whistleblowers who provide information that leads to a successful government...
This week's Department of Justice (DOJ) Catch of the Week goes to Freepoint Commodities. Last Thursday (December 14), the Connecticut-based commodities trading company agreed to pay roughly $98 million to settle government charges it violated the Foreign Corrupt Practices Act (FCPA) by paying bribes to Brazilian government officials. The company also agreed to disgorge roughly $7.6 million to the Commodity Futures...
Yesterday (October 12), the Commodity Futures Trading Commission (CFTC) announced an $18 million whistleblower award. The agency did not disclose the identity of the whistleblower or the associated enforcement action. It never does. The CFTC maintains strict confidentiality over its whistleblowers. All we know is the whistleblower "provided detailed information and assistance," that "was significant in amount...
Grassley Leads Bipartisan Effort to Shore Up CFTC Whistleblower Program
Posted 07/28/23
On Wednesday (July 26), Senator Chuck Grassley (R-Iowa) announced his bipartisan charge to adopt legislation to strengthen the Commodity Futures Trading Commission (CFTC) Whistleblower Program. This is the program that both encourages and protects individuals for coming forward with information relating to potential violations of the Commodities Exchange Act and rewards them with up to 30 percent of any government...