ATTORNEY NEWSLETTER
Bribes And Other Corrupt Business Practices
Commodity Futures Trading Commission Whistleblower Case
$95 Million In Penalties And Disgorgement
The U.S. Commodities Futures Trading Commission (CFTC) has seen a 126% increase in whistleblower tips during 2020. The 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), Pub. L. 111-203, established a CFTC whistleblower program to protect the U.S. economy and the American public. See 7 U.S.C. § 26 et seq. The CFTC investigates a variety of federal securities and commodities violations, banking fraud, and other kinds of business fraud including violations of the Foreign Corrupt Practices Act, 15 U.S.C. §§ 78dd-1 et seq. If you have credible information of any kind of commodities trading fraud or corrupt practices, call the CFTC whistleblower attorneys at Evans Law Firm, Inc. today at (415)441-8669 or toll free at (888)503-8267.
Foreign Corrupt Practices Case
In an order[1] announced December 13, the CFTC found that an energy options trading firm committed fraud by making corrupt payments (e.g., bribes and kickbacks) to employees and agents of certain state-owned entities in Brazil, Ecuador, and Mexico to obtain preferential treatment and access to trades with those entities to the detriment of other market participants. The CFTC found that the defendant concealed its fraud by funneling the corrupt payments through offshore bank accounts or to shell entities, and at times, issuing deceptive invoices for purported “market intelligence” or “sell support.” The Commission determined that the firm engaged in this conduct to secure unlawful competitive advantages in trading physical oil products and derivatives. The order further found that the trading firm committed fraud by making corrupt payments to certain individuals in Brazil in exchange for confidential information, including confidential material involving trading in physical oil and derivatives. The CFTC’s order found that these actions constituted fraudulent and manipulative conduct—including conduct relating to foreign corruption— by which the firm defrauded its counterparties, harmed other market participants, and undermined the integrity of the U.S. and global physical and derivatives oil markets. The Commission has fined the firm over $95 million in civil penalties and disgorgement. Individuals who provided information that was instrumental to the agency in the case will receive a reward.
Cases Start With A Tip To The CFTC
Individuals with information of trading or other corrupt practices like illegal foreign bribes may initiate their CFTC case with a TCR (“Tip, Complaint, or Referral”) Form filed with the Commission. The Commission recommends that whistleblowers seek the counsel of experienced CFTC/SEC whistleblower attorneys to assist them in the process of submitting a TCR form. This will ensure they take the proper steps to remain anonymous and qualify for a whistleblower award. Once the CFTC determines a fine or obtains any recovery based on the information contained in the TCR then submit a Form WB-APP with the CFTC to claim a reward for the information they provided that led to the successful enforcement action.
Contact Us
Any kind of corrupt foreign practices or other trading fraud in options, swaps, futures, commodities or virtual currency or false advertising may constitute the basis of a whistleblower report to the CFTC. Ingrid M. Evans and the other CFTC whistleblower attorneys at the Evans Law Firm know how to present your information on a TCR with the best chance for an ultimate reward if the CFTC elects to take action and the enforcement action is successful. Call Ingrid and the firm’s other CFTC whistleblower attorneys today at (415) 441-8669, or toll free at (888)503-8267 or by email at <a href=”mailto:info@evanslaw.com”>info@evanslaw.com</a>. Ingrid and our other whistleblower attorneys also represent whistleblowers in cases involving the False Claims Act, offshore tax avoidance schemes or other tax fraud before the Internal Revenue Service, and bank fraud under the Financial Reform, Recovery, and Enforcement Act (FIRREA/FIAFEA),
[1] Evans Law Firm, Inc. was not involved in this case in any way.
