CFTC Awards Almost $2.5 Million to Cargill Whistleblower

Updated: June  25, 2019 / 4:35 p.m. 

The U.S. Commodity Futures Trading Commission has awarded almost $2.5 million to a whistleblower in a 2017 case against global grain trader, Cargill Inc, over alleged violations in how it handled trades, the agency said on Tuesday.

CFTC Awards Almost $2.5 Million to Cargill Whistleblower

The award, which was of significant size, was then reduced “because of the whistleblower’s delay in reporting” the misconduct, the agency mentioned in a statement.

 

The agency had fined Cargill $10 in 2017 for delivering inaccurate information on swaps to protect the revenue of the company, and for also failing to supervise the company’s swap dealers.

 

In a statement to sources, Cargill claimed it, and CFTC resolved the matter back in November 2017, and Cargill neither admitted nor denied the findings.

 

The CFTC stated that at the beginning of 2013, Cargill did not comply with regulations regarding thousands of complex swaps that had affected hundreds of counterparties. Swaps are used in changing financial markets by companies to manage any risk outside of futures and options markets.

 

Cargill is known as one of the largest agriculture commodities traders in the world and are guilty for providing inaccurate marks that concealed as much as 90 percent of its mark-up, according to the CFTC.

 

“We reached an agreement with the CFTC to change customer reporting for products provided by its swap dealer, Cargill Risk Management,” the company said in a statement. “We also immediately took actions to enhance our internal controls and employee training programs.”

 

The company has since declined to comment further.

 

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