On July 27, the U.S. Commodity Futures Trading Commission (CFTC) announced a whistleblower award of approximately $9 million. The award was granted to a whistleblower “whose specific, credible, and timely tip led the Commission to open an investigation and ultimately bring a successful enforcement action.” This award is one of the five largest ever granted by the CFTC Whistleblower Program. Through the program, CFTC whistleblowers who provide the agency with original information that aids in a successful enforcement action are entitled to a whistleblower reward ranging from 10-30% of funds recouped by the government.
“We recognize that often whistleblowers come forward to report misconduct at great personal and professional risk,” stated CFTC Director of Enforcement James McDonald in the press release. “Cases like this serve as a reminder that the Whistleblower Program can reward that courage in a very real way, helping to soften the blow of any adverse consequences those whistleblowers might face.”
“Whistleblowers like the individual receiving the award today provide a valuable public service. We encourage others to come forward with information regarding possible violations in the markets the CFTC oversees,” added Whistleblower Office Director Christopher Ehrman.
The CFTC Whistleblower Program was established in 2010 with the passage of the Dodd-Frank Act. The program has proven to be highly successful. The agency has granted whistleblower awards totaling over $120 million, and CFTC actions associated with those awards have led to monetary relief of nearly $1 billion. Earlier this month, the CFTC awarded $1 million to two whistleblowers. In addition to allowing whistleblower, including the protection of whistleblowers’ confidentiality.
Read the CFTC Press Release: CFTC Awards Approximately $9 Million to Whistleblower