Commodity Scam Process
A CFTC complaint about a commodities pool operator has highlighted the need for whistleblowers to take advantage of the agency’s vigilance. These complaints are the backbone of the program and contain critical information necessary to police commodity frauds. Unfortunately, the fund for this process does not increase when whistleblower triggered investigations and rewards are increased. This makes the entire process even more vulnerable. CFTC fraud enforcement is a complex and difficult task.
A CFTC report indicates that there have been an increase in the number of fraudulent commodity trading websites and advisory services. Typically, these websites display impressive trading results – a high net profit and small margin calls – but these are not necessarily real. The CFTC’s website can be a good way to determine if you have become a victim of a scam. However, this tool does not guarantee that the information on a commodity pool is genuine.
Document alteration and intercepting are other common scams. Traders across commodities have reported this problem as well. The CFTC has been investigating and prosecuting fraudulent commodity trading advisory services since 2006. Several of these websites are advertising hypothetical results. The CFTC has also launched an investigation into a $3 billion gem fraud at the Qingdao port in China. The CFTC has also issued warnings against fraudulent traders.