OnDemand WTP Pricing Research

Whistleblower in Cargill swaps case gets $2.5M award | StarTribune

The U.S. Commodity Futures Trading Commission on Tuesday awarded $2.5 million to a whistleblower who exposed misleading pricing at Cargill related to swap trades.

In 2017, the agency fined Cargill $10 million after an investigation found the company provided misleading information to customers on thousands of complex swaps. The Commodity Futures Trading Commission (CFTC) said Cargill effectively hid as much as 90% of its expected revenue, including expected profits and other costs used when setting the price. Swaps are a financial tool that exist in a number of forms as a way to manage risk.

The amount awarded to the whistleblower would have been larger had the informant come forward sooner, the CFTC said in a news release.

“Today’s award goes to a whistleblower who assisted the CFTC at every step of the investigation,” said James McDonald, director of the CFTC’s Division of Enforcement, in a prepared statement. “Although this award was substantial, it was reduced because of an unreasonable delay in reporting the violations. We hope this case illustrates the importance of reporting violations to the CFTC as soon as reasonably possible. Reporting early lessens the harm violators can inflict on the public and hastens our investigations to bring the culprits to justice.”

Read complete article here:

Whistleblower in Cargill swaps case gets $2.5M award – StarTribune.com.

Post a Comment

WP-SpamFree by Pole Position Marketing