The U.S. Commodity Futures Trading Commission announced yesterday that it will make an award of approximately $290,000 to a whistleblower for providing valuable information about violations of the Commodity Exchange Act (CEA).
Under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the CFTC’s Whistleblower Program provides monetary awards to persons who report violations of the CEA if the information leads to an enforcement action that results in more than $1 million in monetary sanctions.
Whistleblowers are eligible for 10 percent to 30 percent of monies collected. The CFTC can also pay awards based on monetary sanctions collected by other authorities in actions that are related to a successful CFTC enforcement action and are based on information provided by a CFTC whistleblower. The Dodd-Frank Act whistleblower provisions also prohibit retaliation by employers against employees who provide the CFTC with information about possible violations, or who assist the CFTC in any investigation or proceeding based on such information.
Aitan Goelman, the Director of the Division of Enforcement, stated, “Receiving high-quality information from whistleblowers is an essential part of the CFTC’s overall enforcement program. Such information allows the staff to bring cases more quickly and with fewer agency resources, and we will continue to provide financial incentives for people with specific and credible information about violations of the CEA to come forward.”
The whistleblower, in this case, provided valuable information about violations of the Commodity Exchange Act, which resulted in an Enforcement Action.
