iOn August 11, the Commodity Futures Trading Commission (CFTC) issued whistleblower awards to three individuals who voluntarily provided the agency with information that contributed to the success of an enforcement action.
Through the CFTC Whistleblower Program, qualified whistleblowers are entitled to monetary awards of 10-30% of the sanctions collected by the government in the enforcement action connected to their whistleblowing.
According to the CFTC’s award order, “the record demonstrates” that the three whistleblowers “voluntarily provided the Commission with original information that led to the successful enforcement of a covered action.”
The CFTC did not disclose the amount awarded to the whistleblowers nor the exact percentage of sanctions awarded. The agency did note that two of the whistleblowers (Claimant 1 and Claimant 3) received higher percentage awards than the third (Claimant 2).
The CFTC notes that in reaching these determinations it considered that “Claimant 1 caused the case to be opened and Claimant 3 provided the highest level of ongoing assistance and cooperation.” The agency further explains that “Division staff found that Claimant 3 provided the highest level of ongoing assistance and cooperation of the three meritorious claimants.”
All three whistleblowers provided ongoing cooperation and assistance through the course of the investigation. “According to Division staff, their level of cooperation was outstanding in terms of their willingness to submit documents and be interviewed as well as the level of detail that they provided,” the award order states.
To qualify for a CFTC whistleblower award, a whistleblower must file their whistleblower disclosure on a Form TCR. The CFTC explains that while Claimant 3 provided the agency with original information, they failed to file a Form TCR. The agency decided to waive the filing requirement, however, because “such a finding would reward Claimant 3 for his/her good faith efforts to report wrongdoing and assist the Commission, and it would encourage similar would-be whistleblowers to come forward in the future.”
The CFTC recently reported to Whistleblower Network News that “[r]oughly 30 percent of all CFTC enforcement investigations stem from whistleblowers, and information from whistleblowers assisted in enforcement actions totaling more than $3 billion.”
The agency further noted that “[t]o date, the CFTC has awarded approximately $330 million to whistleblowers.”
On July 26, Senators Chuck Grassley (R-IA) and Maggie Hassan (D-NH) and Representative Zach Nunn (D-IA) introduced the bipartisan CFTC Whistleblower Fund Improvement Act of 2023. The bill addresses a funding crisis undermining the whistleblower award program by raising the cap on the fund used to pay awards.
Geoff Schweller also contributed to this article.
