Federal Judge — CFTC Can Regulate “Cryptocurrency” Fraud

In good news for investors, a Massachusetts federal judge recently ruled that the Commodity Futures Trading Commission (CFTC) has the authority to fight fraud in the booming virtual currency market. The decision follows on the heels of a ruling in New York where a different federal judge reached the same conclusion. Through the Commodity Exchange Act, Congress authorized the CFTC to fight fraud involving “commodities.” As the virtual currency sector...

SEC Announces $4 Million Award to Overseas Whistleblower

We have said it before, and we will say it again:  the SEC Whistleblower Program offers monetary rewards to non-U.S. citizens.  Today's announcement from the SEC of a $4 million award to an unidentified "overseas whistleblower" demonstrates this.  According to the SEC, the anonymous whistleblower's tip caused the SEC to open an investigation.  The $4 million award "recognizes the continued, important assistance provided by the whistleblower throughout the course of...

Whistleblower News From The Inside -- May 22, 2018

By the C|C Whistleblower Lawyer Team Michigan home health agency owner pleads guilty to Medicare fraud -- Atheir Amarrah, the owner of Prompt Care Home Health Services Inc., pleaded guilty for his role in a scheme involving Medicare claims for home health services that were procured through the payment of illegal kickbacks.  DOJ Justices Turn Away Solvay FCA Off-Label Marketing Case -- “The U.S. Supreme Court on Monday rejected a bid...

Whistleblower News From The Inside -- March 13, 2018

By the C|C Whistleblower Lawyer Team CFTC Moves to Cement Authority Over Crypto Fraud Cases – The Commodity Futures Trading Commission is moving quickly to assert its jurisdiction to police fraud in the cryptocurrency industry. Just two days after U.S. Judge Jack B. Weinstein of the Eastern District of New York ruled in favor of the CFTC, affirming its definition of cryptocurrency as a commodity, the regulator gave notice of...

Constantine Cannon’s Eric Havian Will Join Panel with SEC, CFTC & IRS Whistleblowing Chiefs at OffshoreAlert Conference

The SEC's Jane Norberg, the CFTC's Christopher Ehrman and the IRS's Lee Martin will join Constantine Cannon Partner Eric Havian for a panel entitled "Enriching Domestic & Foreign Whistleblowers: The Growth & Spreading Reach of U.S. Programs." The panel will, among other things, look at the growing number of submissions from whistleblowers outside the United States. The OffshoreAlert Conference on financial intelligence and investigations offers a neutral forum where senior...

Constantine Cannon’s Eric Havian Will Join Panel with SEC, CFTC & IRS Whistleblowing Chiefs at OffshoreAlert Conference

The SEC's Jane Norberg, the CFTC's Christopher Ehrman and the IRS's Lee Martin will join Constantine Cannon Partner Eric Havian for a panel entitled "Enriching Domestic & Foreign Whistleblowers: The Growth & Spreading Reach Of US Programs." The panel will, among other things, look at the growing number of submissions from whistleblowers outside the United States. The OffshoreAlert Conference on financial intelligence and investigations offers a neutral forum where senior...

JP Morgan Whistleblower to Receive $30 Million Award

By the C|C Whistleblower Lawyer Team An unnamed whistleblower is set to receive a $30 million award from the Commodities Future Trading Commission (CFTC), according to Bloomberg, for reporting JPMorgan Chase & Co.’s failure to properly disclose that it was directing certain wealthy clients into investments that would be profitable for the bank. The conduct led to JPMorgan’s 2015 agreement to pay $367 million in sanctions, including $100 million to...

Whistleblower News From The Inside -- February 21, 2018

By the C|C Whistleblower Lawyer Team IRS increases Caterpillar tax penalty to $2.3 billion – In the company’s annual financial reports, Caterpillar Inc. disclosed that the Internal Revenue Service’s determination of back taxes and penalties Caterpillar owes the United States government has grown by about $300 million. The sanctions, imposed for Caterpillar’s offshore tax strategy, have increased as the IRS completes audits of the company’s tax filings. Peoria Journal Star Armored vehicle...

Whistleblower News From The Inside - February 13, 2018

By the C|C Whistleblower Lawyer Team Oxfam whistleblower claims she urged company to take action against sexual harassment claims -- "Helen Evans, Oxfam's former global head of safeguarding, claimed "she begged senior staff and the charities watchdog to act about sexual abuse allegations at the scandal-hit charity."  Evening Standard Whistleblower claims anti-abortion group helped draft HHS letter rescinding Planned Parenthood policy -- "House Democrats say a whistleblower inside the Department...

Fraud Regulated by the CFTC

The Commodity Futures Trading Commission, or CFTC, regulates the futures markets, the options markets, and the swaps trading markets, as well as the actors in those markets, with the mission of fostering "open, transparent, competitive, and financially sound markets" to avoid systemic risk and protect market participants. The CFTC derives its authority from just one piece of legislation, the Commodity Exchange Act ("CEA"). The CEA gives the CFTC regulatory authority...