SEC and CTFC Fraud

Both the Securities and Exchange Commission (“SEC”) and the Commodity Futures Trading Commission (“CFTC”) have whistleblower programs that award people who provide the Government with information about a fraudulent scheme. Examples of this “economic” type fraud include insider trading, stock price manipulation, money laundering, bribery, and many other illegal business practices.

If a whistleblower’s information leads to a successful recovery of at least $1 million, the Government can award the whistleblower between 10% and 30% of the Government’s recovery in that action, as well as in other related cases where the information leads to an additional recovery. Factors that the Government considers in determining precisely how much to award a whistleblower include:

  • the significance of the information the whistleblower provides
  • the level of assistance provided by the whistleblower and the whistleblower’s attorney
  • public policy

The law protects whistleblowers who report SEC and CFTC fraud from employer retaliation, and whistleblowers may also choose to make their reports anonymously through an attorney.

We are actively handling such cases. If you may have one, contact us at Morgan Verkamp LLC to discuss the issues.