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Commodity Spoofing Schemes

The Commodity Futures Trading Commission (CFTC) uses bounty actions to detect violations of the Commodity Exchange Act (CEA). More specifically, the CFTC offers large financial rewards to investors and financial professionals who expose investment fraud schemes. Further, the agency targets futures contract order cancellation fraud and spoofing schemes.  These commodity market manipulation schemes can be the basis of large financial rewards.

Commodity Spoofing Schemes
Commodity Spoofing Scheme and other Market Manipulation Schemes Can Be The Basis of Large CFTC Bounty Actions

What Are Commodity Spoofing Schemes and Commodity Order Fraud Schemes?

A trader “spoofs” when he or she places an order in a futures market with the intention to cancel the order prior to execution. This order fraud manipulates the futures market.  More specifically, the scheme misrepresents supply or demand in order to induce other traders to act in a way beneficial to the spoofer. Systematic spoofing and international order fraud schemes violate the CEA and can be the basis of large bounty actions.

What Commodity Spoofing, Order Fraud, and Market Manipulation Schemes Can Be The Basis of Bounty Actions?

The Commission targets several types of spoofing, order fraud and other market manipulation schemes. More specifically, the CFTC wants information regarding schemes causing artificial market moves.  Most of these schemes involve quick orders and cancellations of futures contracts.

The CFTC specifically targets schemes with conduct such as traders that place and quickly cancel bids and offers in futures contracts in order to benefit other orders and/or positions. Further, schemes where traders quickly place and cancel at or near the best bid or offer. These schemes typically use opposite-side orders.  Additionally, the CFTC target traders who place and cancel multiple orders of the same size repeatedly and simultaneously. Basically, the CFTC targets any scheme designed to cause prices to artificially move.

The CFTC uses its civil authority to charge individuals and companies with spoofing.  The key cases regarding spoofing are In re Tower Research Capital LLC, In re Merrill Lynch Commodities, Inc., In re Mohan, In re Gandhi, CFTC v. Zhao, In re Liew, CFTC v. Sarao, or In re Panther Energy Trading LLC and Coscia.

More Information of Spoofing Bounty Actions and Order Fraud Bounty Actions

For more information on spoofing, order fraud, and market manipulation bounty actions, please go to the following webpages: CFTC Bounty Actions and Commodity Manipulation Schemes Anonymous Rewards.

Whistleblower Reward Laws Collect Billions

Whistleblower Reward Laws including the Federal False Claims Act and Bounty Actions collect billions in wealth each year. These laws offer large financial rewards to professionals with specialized knowledge of fraud.  These laws pay rewards based on a percentage of the amount recovered by the government. The government collects over $5 billion annually through these laws and pays large rewards to whistleblowers.

Whistleblower Reward Laws
Whistleblower Reward Laws Collect Billions and Pay Large Rewards

The Federal False Claim Act Collects Over $3 Billion in 2019

The Department of Justice uses the Federal False Claims Act to regulate government purchasing.  More specifically, this Whistleblower Reward Law targets Medicare, TRICARE, and Medicaid fraud. It also targets fraud committed by federal government contractors including defense contractors.

The Federal False Claim Act helps the government recover taxpayer money. The Act serves as the government’s primary civil tool to redress false claims for federal funds and property.  The Act also helps protect our military and first responders by ensuring that government contractors provide equipment. It also protects American businesses and workers by promoting compliance with customs laws, trade agreements, visa requirements, and small business protections. The Act also protects other critical government programs ranging from the provision of disaster relief funds to farming subsidies.

Since amendments to the law in 1986, the federal government increasingly uses this law collecting over $62 billion. Further, this law brought in more than $3 billion in recoveries in 2019. Use of this law will continue into the future.

Whistleblowers Can Earn Between 15% to 30% of Recovered Funds through the Federal False Claims Act

In 1986, Congress strengthened the Act by increasing incentives for whistleblowers to file lawsuits alleging false claims on behalf of the government.  These whistleblower, or qui tam, actions comprise a significant percentage of the False Claims Act cases that are filed.  If the government prevails in a qui tam action, the whistleblower, also known as the relator, typically receives a portion of the recovery ranging between 15 and 30 percent.  Whistleblowers filed 633 qui tam suits in fiscal year 2019.

Bounty Actions Also Recover Significant Wealth for the Government and Offer Large Financial Rewards

Other whistleblower reward laws including SEC and CFTC bounty actions also collect billions for the government. These bounty actions target fraud in the financial markets. Further, these bounty actions allow whistleblowers to anonymously report fraud and collect large financial rewards.

More Information on Whistleblower Reward Laws

Persons with original knowledge of significant fraud are encouraged through financial rewards to expose fraud.  However, whistleblowers must properly report fraud to qualify for a reward. Further, different whistleblower rewards and protections apply to different types of fraud. For these reasons, it often helpful to understand the different laws and have a lawyer review any potential case.

For more information on whistleblower reward laws, please go to the following webpages: Whistleblower Reward Lawyer, CFTC Bounty Actions, and SEC Bounty Action and Investment Fraud.

SEC ETF Bounty Actions and Market Manipulation

The Securities and Exchange Commission uses anonymous bounty actions to regulate securities. More specifically, the SEC offers financial rewards to individuals who anonymously identify ETF market manipulations. These SEC ETF Bounty Actions encourage high end investors and financial professionals to anonymously expose illegal market manipulation schemes.

SEC ETF Bounty Actions
International SEC ETF Bounty Actions Pay Large Rewards

Illegal Sales of Stocks Can Be The Basis of SEC Bounty Actions

The SEC targets market manipulation schemes including illegal stock sales. These schemes can include international investors involved in market manipulation schemes as well as pump and dump schemes.

The SEC prohibits market manipulation and recently imposed a $35 million fine on investors who secretly dumped large quantities of microcap stock. This SEC action illustrates the agency’s determination to detect fraud and protect investors.  More specifically, the SEC wants to make sure more exotic and complicated ETFs are not used to manipulate the markets.

Illegal Pump and Dump Schemes Can Also Be The Basis of SEC ETF Bounty Actions

The SEC also protects investors from illegal pump and dump market manipulation schemes.  Further, the SEC prohibits the sale of millions of shares while a stock’s price is being artificially inflated and dumped into the market. This prohibition applies to different types of stocks including unregistered stocks and microcap stocks.

Further, the SEC works to root out overseas and domestic players who use microcap markets to take advantage of U.S. investors.

Evasion of Securities Registration Requirements Can Also Be The Basis of Bounty Actions

The SEC also regulates securities registration requirements. Further, the SEC targets those who violate the antifraud and registration provisions of the federal securities laws and who act as unregistered broker-dealers. They also target investors engaged in other manipulative conduct. This conduct includes disguising the true sellers of securities and defrauding investors to generate illicit profits.

SEC Bounty Actions Target Individuals and Entities Globally Who Seek to Defraud US Investors and Markets

The SEC pursues individuals and entities, whether located domestically or abroad, who undertake complex schemes to hide their fraudulent conduct.

Further, the agency uses anonymous bounty actions to encourage investors and financial professionals to expose these schemes. These anonymous bounty actions pay large financial rewards of 10% to 30% of  recovered funds to whistleblowers.

For more information, please go to the following webpages: Anonymous SEC Bounty Actions and Market Manipulation Schemes.

 

International FCPA Bounty Actions

The SEC uses anonymous international FCPA bounty actions with large financial rewards to detect illegal global conspiracies. Further, the SEC works with the DOJ and other government agencies to target multinational corporations who violate the FCPA. More specifically, they target multinational corporations who violate the anti-bribery, books and records, and internal controls provisions of the FCPA. Further, in December 2019, they imposed a billion dollar fine against one corporation for FCPA violations.

FCPA Bounty Actions
International FCPA Bounty Actions

Anonymous International FCPA Bounty Actions

The SEC and CFTC use anonymous bounty actions to detect conspiracies by high-level executives who violate the FCPA. More specifically, the agencies offer large financial rewards to professionals who anonymously expose illegal conduct. This illegal conduct includes illegal bribes, international slush funds, and other violations of the Foreign Corrupt Practices Act.

The financial rewards on these bounty actions range from 10% to 30% of the funds recovered. More specifically, the SEC or CFTC can award $100 million to $300 million on a billion dollar recovery. In other words anonymous whistleblowers can earn large financial rewards. For more information, please go to the following webpage: International Whistleblower Reward Laws and Foreign Corrupt Practices Act Bounty Actions.

International Bounty Actions Target Corrupt Multinational Corporations

Anonymous bounty actions target illegal slush funds, bribes, gifts, and graft. More specifically, anonymous bounty actions target corrupt multinational corporations and executives. Further, the SEC and other United States agencies use bounty actions to detect illegal global conspiracies.

The bounty actions preserve a global commerce system free of corruption. They also provide an effective method to detect money laundering, market manipulation, and other illegal global conspiracies.

Bounty Actions Target Several Types of Global Conspiracies and Illegal Conduct

The SEC uses bounty actions to identify schemes to pay bribes, to falsify books and records, and to fail to implement reasonable internal accounting controls.  They also use bounty actions to detect third party agents and consultants who make bribe payments to government officials or to manage off-the-books slush funds.  Further, bounty actions target sham contracts paid pursuant to false invoices and payments improperly accounted for in books and records. For more information, please go to the following webpage:Illegal Bribe Bounty Actions.

 

Medicare Billing Fraud Whistleblower Rewards

Whisteblower Reward laws target Medicare Fraud and other billing fraud that costs taxpayers over $100 billion each year. More specifically, state and federal governments use Medicare Billing Fraud Whistleblower Rewards to detect criminals who commit healthcare fraud. This fraud includes upcoding, billing for services not rendered, and billing for medically unnecessary procedures.

Medicare Billing Fraud Rewards
Medicare Billing Fraud Whistleblower Rewards

Healthcare Professionals Can Earn Medicare Billing Fraud Rewards by Exposing Systematic Fraud

The federal government and several states use financial rewards to encourage the public to expose healthcare fraud. More specifically, these rewards target healthcare professionals with specialized knowledge of significant Medicare billing scams. These rewards can be extremely large as the amount of the financial rewards are based on any recoveries made by the government.

Whistleblower Reward Laws Offer Whistleblower Protections

Whistleblower Reward Laws also include whistleblower protections. The protections prevent and punish retribution against whistleblowers. These protections include penalties that can be used against employers who retaliate against a whistleblower.

Medicare Billing Fraud Whistleblower Lawyers Offer Confidential Reviews of Potential Claims

Healthcare Professionals commonly consult lawyers to review potential cases. More specifically, Medicare billing fraud lawyers commonly provide free reviews of whistleblower reward cases. Further, the lawyer reviews the fraud scheme to determine viability, evidence, and potential damages. The lawyer also provides advice on whistleblower protections and other related issues. Overall, it can be extremely beneficial to obtain legal advice regarding whistleblower laws prior to taking action or deciding not to take action.

Medicare Billing Fraud is One of the Fastest Growing Crimes in the United States

The cost of healthcare keeps increasing. Further, the number of people on Medicate keeps increasing. The combination of these increases causes an exponential growth in Medicare spending which also creates increased fraud.  Estimates for healthcare fraud are between $100 to $200 billion per year.

More Information of Medicare Billing Fraud Whistleblower Rewards

For more information on this topic, please go to the following webpages: Texas Medicare Fraud Lawyer and Medicare Fraud Whistleblower Reward Information.

 

Employee Whistleblower Rights

CFTC and SEC Bounty Actions protect financial professionals, investors, and former financial professionals. More specifically, the agencies prohibit employers from forcing employees and former employees from signing away their employee whistleblower rights. Further, these whistleblower protections prevent corporations from forcing investors from signing away their rights.

Employee Whistleblower Rights
Employee Bounty Action Rights

Bounty Actions Target Financial Fraud and Other Illegal Conduct

Bounty Actions target illegal conduct including violations of the Securities Exchange Act and Commodities Exchange Act.  More specifically, the SEC targets securities violations and other investment fraud. Further, the CFTC targets money laundering, market manipulation, corrupt practices, and insider trading.

Whistleblower Protections Protect Employee and Former Employee Whistleblower Rights

Both agencies prevent employers from forcing employees to give away their rights to expose illegal conduct. Further, these whistleblower protections apply to retiring and other former employees. More specifically, the agencies prohibit banks and other financial institutions from signing severance agreements blocking bounty actions.

The agencies have taken actions against banks and other corporations who have attempted to prohibit bounty actions. For this reason former employees have bounty action rights regardless of any severance agreement they have signed to the contrary. As such, the agencies encourage employees and former employees to anonymously report illegal conduct.

The Agencies Also Prevent Corporations from Blocking Investor Bounty Action Rights

The SEC and CFTC prohibit corporations from forcing investors signing away their whistleblower bounty action rights. In fact, the SEC recently took action against companies that attempted to force investors to sign away their rights. Further, the SEC clearly prohibits agreements preventing investors reporting potential securities law violations to law enforcement. These agreements violate the SEC whistleblower protections.

SEC and CFTC Whistleblower Protections Broadly Protect Employees and Investors

SEC and CFTC whistleblower protections broadly protect employees. Further, these protections protect investors and anyone who seeks to report illegal conduct through bounty actions.

More Information on Employee Whistleblower Rights and Protections

Please go to the following webpages for more information: Employee Whistleblower Lawyer Information and Employee Whistleblower Protections.

SEC Anonymous Whistleblower Rewards

The Securities and Exchange Commission (SEC) regulates financial markets in the United States. More specifically, the agency regulates many participants engaged in investment and stock exchanges. The agency’s goal is to protect investors from investment fraud and other Illegal conduct. To obtain this goal, the agency uses SEC anonymous whistleblower rewards. These rewards are also called bounty actions.

SEC Anonymous Whistleblower Rewards Allow Anonymous Reporting of Investment Fraud and Other Illegal Conduct

Bounty Actions offer whistleblower rewards to investors and financial professionals who anonymously expose fraud and other illegal schemes. More specifically, the agency uses bounty actions to target hard to detect violations of the Securities Exchange Act and other laws. The illegal conduct needs to be significant and based on original information. In other words, the illegal scheme needs to impact at least several millions of dollars. Further, the original information needs to be based on information not readily available to the public.

SEC Anonymous Whistleblower Rewards
SEC Anonymous Whistleblower Rewards

The SEC Targets Specific Types of Illegal Conduct

While the SEC regulates the financial markets, it commonly targets specific illegal conduct.  In fiscal year 2019, the SEC brought 862 enforcement actions. These actions enforced issuer disclosure and accounting violations. The agency also took action on  auditor misconduct and investment advisory issues. Further, it took action on securities offerings and cryptocurrency offerings.

The agency also commonly takes actions on market manipulation schemes, insider trading schemes, and broker-dealer misconduct. Through the enforcement actions, the SEC obtained judgments and orders totaling more than $4.3 billion in disgorgement and penalties.

SEC Bounty Action Rewards

To date, the SEC has given whistleblowers over $380 million. These SEC whistleblower rewards are calculated as a percentage of the amount of money recovered by the SEC. The percentage can be between 10% to 30% of the money recovered. More specifically, a whistleblower who anonymously exposes a $100 million scheme can recover from $10 million to $30 million.

More Information on SEC Anonymous Whistleblower Rewards

Please go to the following webpages for more information on SEC Anonymous Whistleblower Rewards: SEC Bounty Action Lawyer and Expose Securities Fraud and Earn Large Financial Rewards.

 

 

Bank Secrecy Act Violations

The Commodity Futures Trade Commission regulates a large part of the global financial markets. More specifically, the agency prevents large money laundering schemes and other illegal actions. Further, the agency offers bounties to those who expose Bank Secrecy Act violations. These bounties are large financial rewards and can be collected anonymously.

Bank Secrecy Act Violations
Preventing Money Laundering and Corruption

Violations of the Bank Secrecy Act Can Be The Basis of Large Bounty Actions

The Bank Secrecy Act requires Futures Commission Merchants (“FCMs”) and Introducing Brokers (“IBs”) to comply with several laws.  More specifically, the Act requires FCMs and IBs to maintain and implement a written anti-money laundering (AML) policy. Further, FCMs and IBs need a written customer identification program (“CIP”). Both types of professionals also should file suspicious activity reports (“SARs”) and currency transaction reports (“CTRs”). Violations of these requirements can be the basis of Bounty Actions.

Bounty Actions encourage individuals with original knowledge of Future Commission Merchants or Introducing Brokers violating the BSA to report the violations. Further, the Bounty Actions offer large potential rewards to individuals who report significant violations.

Specific Bank Secrecy Act Violations

The CFTC is seeking Bounty Actions involving several specific schemes and violations. More specifically, targeted violations include improper supervision and records violations. They also want violations related to failures to diligently supervise officers’, employees’, and agents’ opening and handling of accounts. The agency also wants help detecting other types of significant fraud and corruption in the markets.

Other BSA violations targeted include improper enforcement of trading limits assigned by regulators and inadequate CIPs. Additionally, the agency wants to know about FCMs and IBs who fail to properly file required SARs.

The CFTC Is Expanding Its Enforcement Efforts to Detect Corporate Compliance in Preventing Money Laundering

The CFTC is expanding its enforcement efforts into corporate failures to properly implement compliance programs. More specifically, through Bounty Actions the CFTC wants to regulate hard to detect illegal conduct.

More Information on CFTC Bounty Actions

For more information on CFTC Bounty Actions, please go to the following web pages: Anonymous CFTC Bounty Action Information and CFTC Whistleblower Law Information.

Financial Analyst Whistleblowers

Financial analysts are a select group of professionals who through their expertise often have original information of fraud in the financial market. For this reason, the SEC and CFTC encourage financial analyst whistleblowers to expose significant financial fraud. Further, both agencies use anonymous whistleblower reward laws to encourage financial analysts to expose hard to detect fraud.

Financial Analyst Whistleblowers
Financial Analyst Whistleblower Rewards

Financial Analysts and Money Managers Commonly Have Specialized Knowledge of Significant Financial Fraud

Because of their expertise, financial analysts commonly detect significant fraud schemes in the financial markets. SEC and CFTC bounty actions want this specialized knowledge and are offering financial rewards for it.

More specifically, a financial analyst’s independent analysis of the financial markets often detects market manipulation and other investment fraud schemes. This original information can be the basis of SEC and CFTC bounty actions which pay large financial rewards. As such, financial analysts, money managers, and other financial professionals have a strong economic incentive to expose significant fraud.

SEC and CFTC Bounty Actions Offer Protections to Financial Analyst Whistleblowers

Further, these bounty actions offer whistleblower protections to financial professionals. More specifically, the whistleblower reward laws allow whistleblowers to expose fraud anonymously. Financial analysts need to report the fraud through a lawyer in order to report the fraud anonymously.

The laws also protect financial analysts from retaliation including termination. Further, the laws prevent companies from requiring employees or former employees signing away their bounty action rights. Therefore, former and retired financial professionals retain their right to expose fraud through bounty actions. Further, companies that block this right through severance agreements can be held liable for damages.

More Information on Anonymous Financial Analyst Bounty Actions and other Anonymous Bounty Actions

For more information on this topic, please go to the following webpages: Financial Analyst Whistleblower Reward Information and SEC and CFTC Bounty Actions.

Swap Fraud Bounty Actions

The CFTC regulates swap trades in the financial markets. Further, the agency uses bounty actions to detect fraud schemes in the swap markets. These swap fraud bounty actions allow investors and financial professionals to anonymously expose fraud and collect large rewards.

Swap-Fraud-Bounty-Actions
Anonymously Expose Swap Agreement Fraud

What is a Swap?

A swap allows counter parties to exchange (or “swap”) a series of cash flows based on a specified time horizon. The counter parties use a swap agreement to hedge or speculate on the variable cash flows or liabilities in the swap. The swap agreement defines the dates when the cash flows are to be paid and the way they are accrued and calculated.

The swap agreement also defines the variable cash flow or leg of the swap.  Counter parties commonly use swaps for uncertain variables such as a floating interest rate, foreign exchange rate, equity price, or commodity price.

Investors Use Swaps to Speculate and Hedge Risks

More specifically, investors use swaps to hedge against certain positions or risks such as changes in interest rates. Investors also use swaps to speculate on future changes in the expected direction of underlying index or currency prices.

The Large Size of the Swap Market Invites Complicated Fraud Schemes

The swap market is one of the largest and most liquid global marketplaces. According to the recent statistics, the notional amount outstanding in over-the-counter interest rate swaps alone was more than $542 trillion. These large values invite complicated fraud schemes.

Swap Investors Typically Customize Swap Agreements Allowing For Complicated Fraud Schemes

There are several types of swaps including currency swaps, equity swaps, and credit swaps. Further, investors commonly customize swaps to the point where there are few standardized swap agreements. In other words, swap contracts cannot be easily traded on an exchange and are not typically standardized. The variety of customized swaps and types of swaps make swap fraud hard to detect.

High End Investors and Financial Professionals Need to Expose Hard to Detect Fraud Through Swap Fraud Bounty Actions

The large variety of swap agreements and amount of wealth in the swaps market make it ripe for hard to detect fraud. For this reason, high end investors and financial professionals need to expose hard to detect fraud in the swaps market.

More Information on Swap Fraud Bounty Actions and Other CFTC Bounty Actions

Please feel free to go to the following webpages for more information on this topic: CFTC Bounty Action Lawyer and Anonymous Bounty Actions.