SEC and Commodity Whistleblower Programs: How Financial Industry Insiders Report Fraud

If you have inside information about securities fraud, market manipulation, accounting misconduct, or other financial wrongdoing, you may be able to report it to the U.S. Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC) and potentially receive a financial award. Both agencies have whistleblower programs that can reward eligible individuals with 10% to 30% of qualifying monetary sanctions. They also offer important protections for insiders concerned about retaliation or who want to report misconduct without immediately revealing their identities.

For legal help with an SEC or CFTC whistleblower claim, speak with a whistleblower attorney through the Super Lawyers directory.

What Are the SEC and CFTC Whistleblower Programs?

The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) operate whistleblower programs. The Dodd-Frank Wall Street Reform and Consumer Protection Act is the federal statute that created the legal framework to establish both programs.

While the two programs are similar, they address different areas of the financial industry. The SEC focuses primarily on violations of federal securities laws. The CFTC oversees derivatives markets involving commodities, futures, options, and swaps.

The SEC gave people a way to voluntarily report information they had about potential violations of federal securities laws. The person reporting doesn’t have to work for the company they are reporting on to qualify. The program covers employees, former employees, investors, and contractors.

The CFTC’s whistleblower program covers individuals who provide original information about potential violations of the Commodity Exchange Act (CEA). If the whistleblower’s report leads to a successful enforcement action, the whistleblower may be entitled to an award.

Sometimes misconduct falls outside both programs’ coverage. If the alleged wrongdoing involves fraud against the federal government, for example, the False Claims Act may provide another avenue for reporting the conduct. The False Claims Act allows private individuals, known as qui tam relators, to bring certain claims on behalf of the federal government.

What Types of Misconduct Can Whistleblowers Report?

Both programs allow you to report financial misconduct, which can take many forms. The type of misconduct you report will determine which agency is more appropriate. Sending a generic complaint to the wrong regulator should not be treated as a safe substitute for following the applicable whistleblower procedures.

If you are unsure where your information belongs, an attorney can help you evaluate the conduct and determine how to proceed before you submit a tip.

Securities-Related Misconduct Covered by the SEC

The SEC program addresses misconduct related to financial securities. While this includes securities fraud, it can also include many other types of misconduct:

• Securities fraud
• Accounting fraud
• False or misleading disclosures
• Insider trading
• Investment adviser and broker-dealer violations
• Market manipulation
• Ponzi and other investment schemes
• Public-company violations

A company’s dishonest behavior does not automatically give the SEC jurisdiction to investigate. The violation must violate a federal securities law for the SEC to have jurisdiction.

Commodity and Derivatives Misconduct Covered by the CFTC

The CFTC handles a different section of the financial markets. It specifically recognizes fraud and corrupt practices involving environmental commodities as potential subjects of whistleblower reports. That means the program reaches beyond the traditional picture of someone trading commodity futures on a crowded exchange floor:

• Commodity-market fraud
• Market manipulation
• False or misleading information
• Fraud involving futures, options, or swaps
• Unregistered or unlawful activity
• Forex misconduct
• Environmental commodity manipulation

What Are the Requirements for a Whistleblower Claim?

The SEC and CFTC have specific requirements for reporting, the type of information provided, and the connection between that information and a successful enforcement action.

First, send your information to the agency with jurisdiction over the potential violation. SEC whistleblowers seeking an award generally must submit their information directly to the SEC through its required process. CFTC whistleblowers must submit a Form TCR to participate in the CFTC whistleblower program.

Both programs generally require a whistleblower to provide information voluntarily. In practical terms, that means you cannot wait until a government agency or certain regulatory authority comes knocking and then claim the information as a voluntary whistleblower submission. A whistleblower generally needs to provide original information rather than simply directing regulators to something they could find on their own.

That can include independent knowledge, meaning facts the whistleblower knows that are not derived from publicly available information. It can also include independent analysis. The whistleblower may analyze public information in a way that reveals something non-obvious about a potential violation. Simply sending a regulator a news article, public filing, or other information that is already readily available generally will not be enough on its own.

The information generally must contribute to a successful enforcement action or otherwise satisfy the applicable agency’s requirements for showing that the information “led to” the action. For the SEC, qualifying information may cause the agency to open a new investigation, reinstate an existing investigation, pursue a new line of inquiry, or make a significant contribution to an existing investigation.

The CFTC similarly evaluates whether the whistleblower’s information contributed to a successful enforcement action.

Can You Report a Company Without Your Employer Knowing?

Both the SEC and CFTC permit anonymous whistleblower submissions. Anonymity comes with specific procedural requirements, particularly if you want to pursue a whistleblower award. Additionally, certain statutory requirements may require disclosure. So while both programs can provide some confidentiality, it isn’t guaranteed in every situation.

Under the SEC’s whistleblower program, to remain anonymous and eligible for an award, an attorney must represent you and submit the information on your behalf. The attorney also must complete the required certification. Identity disclosure may be required in certain administrative or judicial proceedings.

The CFTC accepts anonymous whistleblower reports through Form TCR. An attorney can submit the form anonymously on your behalf and complete the required counsel certification. However, the CFTC must verify the whistleblower’s identity to pay the award.

During the final eligibility determination, the agency may need to identify an award candidate to a limited number of staff. In unusual circumstances, the agency says the whistleblower may also need to be identified publicly for trial.

How Much Can a Whistleblower Receive?

A whistleblower’s potential award depends on the program used, the facts of the situation, and the outcome of the enforcement action. SEC monetary awards generally range from 10% to 30% of the collected sanctions covered by the qualifying action.

However, the underlying action must total more than $1 million in monetary sanctions. When the SEC sets the award amount, it considers several factors, including the whistleblower’s level of assistance, the significance of the information provided, culpability, reporting delay, and interference with internal compliance systems. SEC award money comes from an investor protection fund financed by the monetary sanctions collected from violators.

CFTC whistleblower awards are generally 10% to 30% of qualifying monetary sanctions collected. The underlying CFTC enforcement action generally must result in more than $1 million in monetary sanctions. The award percentage depends on the circumstances and the whistleblower’s contribution.

In September 2026, a rule change will affect CFTC awards. The Commission approved a 30% presumption for awards of $5 million or less, but the rule is not effective until 30 days after publication in the Federal Register. The Customer Protection Fund, financed through monetary sanctions paid to the CFTC, funds these awards.

What Can Disqualify a Whistleblower from an Award?

Whistleblowers aren’t without accountability. To remain eligible for a monetary award, whistleblowers must meet several requirements. They must follow the required reporting procedure and voluntarily provide the original information. They cannot wait too long to report or knowingly provide false information.

Certain government, regulatory, or self-regulatory personnel are excluded. Sometimes, a whistleblower who participated in or was culpable for the misconduct cannot later report and collect.

The SEC also acknowledges that whistleblowers may use internal reporting procedures and still be eligible for an award, as long as they file their SEC report within the applicable 120-day period.

When Should You Talk to a Whistleblower Attorney?

If you have information you believe is original and establishes financial misconduct, you need a plan in place. Talking to a lawyer before you file a tip, complaint, or referral helps ensure you follow proper procedures.

Use the Super Lawyers directory to find a whistleblower attorney who can help you understand your legal options.