Frequently Asked Questions

What is the Commodity Futures Trading Commission (CFTC)?

The CFTC is an independent agency created by Congress in 1974 to regulate commodity futures and option markets in the United States. The Dodd-Frank Act created CFTC whistleblower provisions in addition to comprehensive reform to the regulation of swaps.

What is the Dodd–Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act)?

The Dodd-Frank Act is a federal statute, Pub.L. 111-203, H.R. 4173, enacted by the 111th U.S Congress and signed into law on July 21, 2010. The Dodd-Frank Act created the SEC whistleblower program and rewards whistleblowers who report fraud to the SEC, Commodity Futures Trading Commission and other government authorities.

What is the False Claims Act?

The False Claims Act is a federal statute, 31 U.S.C. § 3729 et seq., enacted to encourage citizens to come forward with information and help the U.S. government to combat defense contract fraud, health care fraud and other types of fraud. The False Claims Act provides for triple damages and a penalty from $5,500 to $11,000 per claim against anyone who knowingly submits or causes the submission of a false or fraudulent claim to the United States.

What does qui tam mean?

This is an action brought under a statute that allows a private person to sue for a penalty, part of which the government or some specified public institution will receive. The False Claims Act provides for qui tam actions. Private citizens may file a lawsuit in the name of the U.S. government charging fraud by government contractors and others who receive or use government funds. They may share in any money recovered.

What is a relator?

Relator is the term used to describe a whistleblower under the False Claims Act. A relator is a private citizen acting as a private lawyer general. A relator may initiate actions against individuals or companies who have committed fraud against the government. 

What is a whistleblower?

A whistleblower is any individual who provides, or two or more individuals acting jointly who provide, information relating to a violation of the securities laws in a manner established by SEC rule or regulation.

What is original information?

Original information is information derived from the whistleblower’s independent knowledge or analysis; is not known to the SEC from any other source (unless the whistleblower is the original source of the information); and is not exclusively derived from an allegation made in a judicial or administrative hearing, in a governmental report, hearing, audit, investigation, or from the news media, unless the whistleblower is a source of the information.

What is a covered judicial or administrative action?

A covered judicial or administrative action is any judicial or administrative action brought by the SEC under the securities laws that results in monetary sanctions exceeding $1 million pursuant to the Dodd-Frank Act.

What is the Securities and Exchange Commission (SEC)?

The SEC is the federal agency responsible for enforcing the federal securities laws, regulating the securities industry and overseeing the nation's stock and options exchanges.

What is the Sarbanes Oxley Act (SOX)?

SOX is a federal statute, Pub.L. 107-204, 116 Stat. 745, enacted on July 30, 2002, which created new or enhanced standards for all U.S. public company boards, management and public accounting firms. SOX includes provision that protect whistleblowers from retaliation when reporting violations of any rule or regulation of the SEC; federal criminal provisions relating to securities, bank, mail, or wire fraud; and any federal law relating to fraud against shareholders.