{"id":273,"date":"2010-07-18T11:33:06","date_gmt":"2010-07-18T11:33:06","guid":{"rendered":"http:\/\/www.whistleblowerlawyerblog.com\/2010\/07\/whistleblowers_reporting_deriv.html"},"modified":"2021-06-11T17:47:54","modified_gmt":"2021-06-11T21:47:54","slug":"whistleblowers_reporting_deriv","status":"publish","type":"post","link":"https:\/\/www.finchmccranie.com\/whistleblower-blog\/whistleblowers_reporting_deriv\/","title":{"rendered":"Whistleblowers Reporting Derivatives Fraud?  Whistleblower Incentives Must Be Paid by CFTC Under New Financial Reform Bill"},"content":{"rendered":"<p>The new financial reform bill that awaits the President&#8217;s signature this week has something important for potential whistleblowers with knowledge of fraud in options, futures, derivatives and other financial products within the jurisdiction of the Commodity Futures Trading Commission (CFTC).  The bill will modify the Commodity Exchange Act to provide whistleblower rewards and protections.<\/p>\n<p>Similar to the <a href=\"https:\/\/www.whistleblowerlawyerblog.com\/new_sec_whistleblower_program_1\/\">new SEC whistleblower awards for persons who reports securities fraud<\/a>, the rewards to whistleblowers will be available if the CFTC recovers monetary sanctions of more than $1 million because of the whistleblower&#8217;s information. <\/p>\n<p>Like SEC whistleblowers, CFTC whistleblowers will have an enforceable right to 10-30% of what the CFTC recovers in substantial cases when the whistleblower has &#8220;voluntarily provided original information to the Commission that led to the successful enforcement of the covered judicial or administrative action, or related action.&#8221;  (Section 748 of Dodd-Frank Wall Street Reform and Consumer Protection Act, reprinted below).<\/p>\n<p>Crucial to the success of these new whistleblower programs, whistleblowers will know that they <em>will receive at least 10% of the recovery<\/em> in significant cases when the whistleblower meets the law&#8217;s criteria.  <\/p>\n<p>The history of the nation&#8217;s major whistleblower statute, the <a href=\"https:\/\/www.whistleblowerlawyerblog.com\/whistleblower_lawyer_blog_spec_1\/\">False Claims Act<\/a>, shows that guarantees of meaningful rewards are the critical element in causing whistleblowers to report substantial fraud.  Fraud recoveries increased dramatically once Congress amended the False Claims Act in 1986 to provide meaningful whistleblower rewards of 15-25% in cases in which the government intervenes. <\/p>\n<p>The <a href=\"https:\/\/www.qui-tam-litigation.com\/art8.html\">new IRS Whistleblower Program <\/a>is proving the same point, as quality submissions have poured in now that a right to a meaningful whistleblower award exists.<\/p>\n<p>Congress has set forth general criteria for the CFTC to determine the amount of the award within the 10-30% range.  Factors that the CFTC will consider include:<\/p>\n<p><em>&#8220;(I) the significance of the information provided by the whistleblower to the success of the covered judicial or administrative action;<\/p>\n<p>&#8221;(II) the degree of assistance provided by the whistleblower and any legal representative of the whistleblower in a covered judicial or administrative action;<\/p>\n<p>&#8221;(III) the programmatic interest of the Commission in deterring violations of the Act (including regulations under the Act) by making awards to whistleblowers who provide information that leads to the successful enforcement of such laws; and<br \/>\n&#8221;(IV) such additional relevant factors as the Commission may establish by rule or regulation&#8221;<\/em>.<br \/>\n <a href=\"https:\/\/www.finchmccranie.com\/whistleblower-blog\/whistleblowers_reporting_deriv\/#more-273\" class=\"more-link\">Continue reading \u2192<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The new financial reform bill that awaits the President&#8217;s signature this week has something important for potential whistleblowers with knowledge of fraud in options, futures, derivatives and other financial products within the jurisdiction of the Commodity Futures Trading Commission (CFTC). The bill will modify the Commodity Exchange Act to provide whistleblower rewards and protections. Similar [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-273","post","type-post","status-publish","format-standard","hentry","category-sec-whistleblower-program-cftc-whistleblower-program"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Whistleblowers Reporting Derivatives Fraud? Whistleblower Incentives Must Be Paid by CFTC Under New Financial Reform Bill &#8212; Whistleblower Lawyer Blog &#8212; July 18, 2010<\/title>\n<meta name=\"description\" content=\"The new financial reform bill that awaits the President&#039;s signature this week has something important for potential whistleblowers with knowledge of fraud &#8212; July 18, 2010\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.finchmccranie.com\/whistleblower-blog\/whistleblowers_reporting_deriv\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Whistleblowers Reporting Derivatives Fraud? 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