The Commodity Futures Trading Commission (CFTC) is the government agency granted with authority to regulate commodities and futures, which are traded publicly in this country. Commodities are everything from food to agricultural products, and futures are when someone essentially takes a position for delivery in the future. They are financial contracts that set a price and date in advance. The CFTC is the agency with regulatory authority over anything related to the trade, on those kinds of financial transactions.
The CFTC has a great deal of discretion when giving out awards for whistleblowers. It is up to the agency to determine what the award should be based on the whistleblower’s participation and the quality of the information provided. The reward decision may be appealed within 30 days of a final determination to a Court of Appeals.
The mandatory thresholds relative to whistleblower awards is that the CFTC or the government in a related action, must have collected more than $1 million. Then the minimum it should award is 10% of what it collects.
Having a CFTC whistleblower lawyer might help someone understand their possible whistleblower award by determining whether there has been a violation of the Commodity Exchange Act and figuring out how to present the best case possible for the CFTC. The procedure to report the allegations and to file to collect the award is complicated and an experienced attorney could be helpful in that regard. Read below to learn more about CFTC whistleblower awards.
Factors That May Affect the Award
There are many factors the CFTC will consider in a whistleblower award. For one, the CFTC considers the degree to which the whistleblower was involved in or culpable for the action. On the other hand they may increase an award based upon the significance of of the information provided by the whistleblower. If the whistleblower is eligible for an award the award amount will be between 10 and 30%.
Most whistleblowers who are coming forward with information in good faith would likely be in a position to avoid most factors that might reduce an award.
Advocating for a Larger Share of the Award
An accomplished attorney can advocate for a larger share of the award for the whistleblower. The range of 10 to 30% of the award is set by the program, but obviously that leaves some room to advocate for a higher share. Also, if the whistleblower is denied an award, they can appeal it. For more information, consult with a knowledgeable lawyer.
How Long Does it Take to Receive the Award?
It can take a while for the whistleblower to receive the award in a CFTC case. The factors that could extend the length of the CFTC whistleblower award process have to do with the several different aspects of it. First, it must obtain at least $1 million from the violator, for there to be a covered action, based on the whistleblower’s information and that alone can take some time. The whistleblower then has 90 days to file the Form WB-APP. Then the process of determining the award from the CFTC really begins. With preliminary, proposed final determinations and potentially appeals from the whistleblower, the process can take some time.
How a Lawyer Could Help
There are several steps in the CFTC whistleblowerg process that have to be considered, and each can be crucial to the whistleblower in determining whether they are able to obtain an award, whistleblowers often seek the help of counsel. In addition, to file a claim on an anonymous basis, the CFTC requires the whistleblower obtain representation. Call today to learn more about how an attorney could help you with recovering CFTC whistleblower awards.