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.
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
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.
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
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.
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.
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 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
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.
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
The CFTC is targeting violations of the Foreign Corrupt Practice Act that manipulate the commodities market. These violations focus on illegal bribes that seek to improperly influence foreign officials and manipulate the market. Further, the agency is targeting companies who pay illegal payments related to fraud, manipulation, false reporting, or a number of other types of violations under the CEA and Commission Regulations. For this reason the agency uses Anonymous CFTC FCPA Bounty Actions to detect violations of the CEA and FCPA.
CFTC FCPA Bounty Action Enforcement
The CFTC enforces CEA provisions that encompass foreign corrupt practices. Such misconduct includes illegal bribes that alter prices in the commodity markets. These prices drive the U.S. derivatives prices. This misconduct also covers bribes paid to secure business in connection with regulated activities. The regulated activities include trading, advising, or dealing in swaps or derivatives, paid out of funds investors believed were being used to invest.
Additionally, the agency regulates bribes used to manipulate benchmarks related to the derivative market. More specifically, the agency is targeting bribes that are the product of corruption and might be falsely reported to benchmarks.
The CFTC Encourages Internationals, Financial Professionals, and Other Individuals With Specific Knowledge of Significant Bribes to Expose Bribery Schemes
CFTC FCPA Bounty Actions encourage individuals with original knowledge of international bribes to expose bribery schemes. Further, they want international and financial professionals with specific information of large bribery schemes to anonymously expose these schemes. Through large financial rewards, the agency encourages the public to expose bribery schemes. The agency also offers whistleblower protections including the ability to anonymously expose corruption.
CFTC FCPA Bounty Action Rewards are often substantial as the agency awards a percentage of funds recovered. For significant bribery schemes, the agency rewards tens of millions of dollars or more to individuals.
Insider trading bounty actions allow financial professionals to anonymously expose inside trading schemes and collect financial rewards. These Bounty Actions target brokers, insiders, and others illegally using non-public insider information.
The CFTC Is Targeting Specific Types of Insider Trading Schemes
The United States Commodity Future Trade Commission regulates illegal conduct in the commodities market. More specifically, it oversees futures contracts of commodities including currencies and swaps. Detecting insider trading in these complicated financial investments can be difficult.
For this reason the CFTC encourages financial professionals to anonymously report hard to detect insider trading schemes. More specifically, they are targeting trades made on market moving information that the source had a duty to protect.
Brokers And Employee Who Use Material Nonpublic Information For Illegal Trades Are a Target
The CFTC is also targeting brokers front running customer orders or taking the other side of any customer order without consent. The agency is also seeking information on tips or trades employees make using material nonpublic information obtained by virtue of employment.
Other Types of Insider Trade Schemes
Other targeted schemes involve trades on material nonpublic information that was obtained by fraud or deception. Additionally, the agency is targeting FCMs or brokers improperly disclosing customer orders or other material nonpublic information MNPI.
Swap Insider Trade Bounty Actions
Swap dealers or major swap participants improperly disclosing material nonpublic information MNPI or using MNPI provided by a counterparty without the counterparty’s consent. Persons with knowledge of illegal use of material nonpublic information in swaps are encouraged to anonymously report the schemes.
More Information on Inside Trading Schemes and Large Anonymously Reported CFTC and SEC Bounty Actions
Both the SEC and CFTC regulate cryptocurrency in the financial markets. Both agencies use bounty action rewards to detect cryptocurrency fraud. These Cryptocurrency Fraud Bounty Actions allow professionals and investors to anonymously expose fraud and collect rewards.
The United States Securities Exchange Commission Regulates Cryptocurrency Offerings and is Targeting Fraud in the Market
The SEC regulates some types of cryptocurrency as securities. In doing so, the SEC regulates offerings and can block unlawful offerings that could flood the cryptocurrency market. As an example the SEC took action to block a $1.7 Billion cryptocurrency offering earlier this week.
In regulating cryptocurrency and cryptocurrency ETFs as securities, the SEC targets all fraud schemes and securities violations.
The United States Commodity Future Trading Commission Also Regulates The Cryptocurrency Market and Wants Information Technology Professionals and Finance Professionals to Expose Fraud
The CFTC also regulates the cryptocurrency market and classifies virtual currencies and ether as commodities. Further, the CFTC targets companies and individuals who fraudulently solicit investments in virtual currencies. More specifically, the agency is targeting specific types of cryptocurrency fraud schemes through bounty actions. One type of cryptocurrency fraud are virtual currency price manipulation schemes (like pump-and-dump schemes). They are also targeting pre-arranged or wash trading of virtual currencies including swaps or futures contracts based on virtual currencies.
The CFTC is also targeting virtual currency trades by certain types of unregistered platforms and unregistered persons such as off-exchange leveraged, margined, or financed commodity transactions. Supervision failures or fraudulent conduct are also being targeted by virtual currency exchanges.
The U.S. Commodity Futures Trading Commission is offering large financial rewards to financial professionals who expose money laundering. Further, financial professionals who anonymously expose money laundering through a lawyer, can protect their identity. These money laundering whistleblowers can also collect the rewards anonymously.
Money Laundering Violations Can Be The Basis For Anonymous Bounty Actions
The CFTC regulates the US commodities market including the currency markets. Further, through bounty actions the CFTC and SEC are targeting money laundering violations involving large financial corporations. Successful bounty actions require original knowledge of significant violations of Anti-Money Laundering Rules.
The CFTC requires money laundering bounty actions to be properly reported. More specifically, successful whistleblowers need to provide specific original information of significant money laundering violations to the CFTC. The Anti-Money Laundering Rules, Bank Secrecy Act, and Money Laundering Control Act require banks to report money laundering. Bounty Actions target financial companies who fail to report clear signs of money laundering. More specifically, the CFTC wants tips regarding unscrupulous banks that are complicit in the placement of money laundering. These banks often misrepresent money sources to increase business and profits.
Financial Professionals Have Specific Knowledge of Hard to Detect Illegal Acts
Because Financial Professionals work with specialized knowledge, they often have original information of illegal conduct. The CFTC wants this information to help regulate the financial markets and prevent significant illegal money laundering. They recently announced that they are seeking information on money laundering as well as other illegal conduct.
More specifically, the CFTC wants financial professionals with knowledge of bank and other corporations who are not following Anti-Money Laundering Rules.
More Information on Anonymous Bounty Actions
The CFTC is offering large financial rewards to financial professionals who expose illegal conduct in the financial markets. More specifically, they are seeking original information on money laundering, insider trading, market manipulation, and illegal bribes. For more information on Anonymous Bounty Actions, please feel free to go to the following web pages: CFTC Bounty Actions, Anonymous Bounty Actions, and SEC Bounty Actions.
ETF Bounty Actions offer large financial rewards to professionals and investors who anonymously expose ETF Fraud. These rewards target financial fraud schemes including ETF violations. More specifically, Bounty Actions encourage people with specialized knowledge of illegal manipulation in the financial markets to expose complicated fraud schemes and insider trading. Because of the prevalence and complexity of some ETFs, the ETF market is of particular interest for Bounty Actions.
ETF History and Development
An exchange-traded fund (ETF) trades on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds and generally operates with an arbitrage mechanism designed to keep it trading close to its net asset value, although deviations can occasionally occur. ETFs are regulated by the SEC and/or the CFTC depending what is in the fund.
ETFs were first developed over 27 years ago. This investment vehicle provides investors with a number of benefits, including access to a wide array of investment strategies. ETFs are hybrid investment products not originally allowed under the U.S. securities laws. More specifically, ETF shares trade on an exchange like a stock or closed-end fund. However, ETF shares also allow identified large institutions to transact directly with the fund.
ETF Regulations and ETF Bounty Actions
The SEC has issued more than 300 exemptive orders allowing ETFs to operate under the Investment Company Act. Currently, approximately 2,000 ETFs with net assets worth over $3.3 trillion are on the market. Investors use ETFs for a variety of investment strategies.
Some ETFs combine several different types of assets and can conceal troubled assets. For this reason, the SEC and CFTC require ETF transparency and ETF disclosures. These rules protect Main Street investors from fraud. More specifically, the SEC and CFTC are working for a consistent, transparent, and efficient ETF regulatory framework. The newest framework eliminates some regulatory hurdles, but maintains investor protections.
More Information of ETF Bounty Actions and Other Bounty Actions