You can file a reparations complaint if:
- Find out if the individual or firm in your complaint was registered with the CFTC at the time of the alleged wrongdoing or at the time the complaint is filed. Registration and examination of intermediaries is conducted on behalf of the CFTC by the National Futures Association (NFA) under the supervision of the CFTC. You can use the NFA BASIC database to find this information, or call the NFA Information Center (1-800-612-3570) or the CFTC Complaints Section (202-418-5506).
- The individual or firm violated the Commodity Exchange Act (CEA) or CFTC regulations. Provide a detailed statement that describes how you believe your broker or brokerage firm violated the CEA or CFTC rules, resulting in losses to your account. You should provide as much evidence of your alleged violations as possible by providing any and all documents that support your claim, such as account opening forms, account statements, and trading records.
Illegal activities include, but are not limited to:
- Fraud – cheating or attempting to cheat you through false claims concerning the likelihood of profit or loss; false or misleading statements about trading or about your salesperson, advisor, or the trading program you use; or false or misleading statements about any other material fact that you relied on in making a decision about futures or options trading. See avoid fraud for more information.
- Nondisclosure – failure to inform you of the risks associated with futures and option trading; failure to disclose any other material fact you required to make a decision about futures or option trading
- Breach of fiduciary duty – a failure by a broker or salesperson to act with special care in handling your account when required to do so by the Commodity Exchange Act or CFTC rules.
- Unauthorized trading – trades made by a broker without your prior specific authorization or a written grant of authority to effect trades without your specific authorization.
- Misappropriation – a broker’s unauthorized use or diversion of money that you deposited for the purpose of trading futures or options.
- Churning – excessive trading of your account for the purpose of producing commissions and with disregard of your financial interests.
- Wrongful liquidation – the unauthorized closing of your position.
- Failure to supervise – failure by a supervisor to diligently oversee the handling of your account by the supervisor’s partners, officers, employees, and agents.
- You are not involved in other actions involving the same claim. Other actions would include an NFA arbitration forum or civil court action.
- The individuals or firms you name are not involved in a bankruptcy or receivership proceeding. If the respondents are in bankruptcy or receivership, contact them or their lawyers for the names of the bankruptcy trustee or receiver to determine if you may file a claim.
- You submit a filing fee by check or money order. Make checks or money orders payable to the CFTC for the procedure you choose: Voluntary ($50), Summary ($125), or Formal ($250).
- If you are not a citizen of the United States, you may need to file a bond or waiver of bond before we can accept your complaint. See Section 12.13(b)(4) of the reparations rules.