June 25, 2019 / 8:35 PM / 3 months ago

U.S. CFTC awards nearly $2.5 million to Cargill whistleblower

CHICAGO, June 25 (Reuters) - The U.S. Commodity Futures Trading Commission has awarded about $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.

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

The agency fined Cargill $10 millihere in 2017 for providing inaccurate information on swaps to protect its revenue, and for failing to supervise the company's swap dealers. At the time, Cargill did not admit to any wrongdoing.

The company did not immediately respond to a request for comment on Tuesday.

The CFTC said that beginning in 2013, Cargill did not comply with regulations on thousands of complex swaps that affected hundreds of counterparties. Swaps are utilized in varying financial markets by companies to manage risk outside of futures and options markets.

Cargill, one of the largest agriculture commodities traders in the world, provided inaccurate marks that concealed as much as 90 percent of its mark-up, according to the CFTC. (Reporting by P.J. Huffstutter; editing by Grant McCool)

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