On August 29, the CFTC awarded a whistleblower $4 million for voluntarily providing original information which led to a successful enforcement action.

Key Takeaways

• The awarded whistleblower’s tip caused the CFTC to open an investigation
• Through the CFTC Whistleblower Program qualified whistleblowers are eligible for monetary awards of 10-30% of the funds collected in an action aided by their disclosure
• Since its whistleblower program was established in 2010, the CFTC has awarded over $380 million to whistleblowers

On August 29, the U.S. Commodity Futures Trading Commission (CFTC) announced a whistleblower award of over $4 million granted to an individual whose disclosure caused the agency to open an investigation which resulted in a successful enforcement action.

According to the CFTC, the whistleblower “shared knowledge about the complex products and transactions involved in the misconduct” and this information “was highly significant to the Commission.”

“The violations would have been difficult to detect without the knowledge of an insider,” said Director of Enforcement Ian McGinley. “The whistleblower’s information played a key role in putting a stop to the misconduct.”

According to the CFTC, the whistleblower was an insider who “brought to the CFTC’s attention failures to comply with certain CFTC rules to protect against fraudulent, deceptive, and manipulative acts or practices.”

“It is not always easy to come forward, particularly when it involves where you work or people you work with,” said Whistleblower Office Director Brian Young. “The CFTC appreciates whistleblowers who make that difficult choice.”

Through the CFTC Whistleblower Program, qualified whistleblowers, individuals who voluntarily provide original information which leads to a successful enforcement action, are eligible to receive monetary awards of 10-30% of the funds collected in the enforcement action aided by their disclosure.

The CFTC weighs a number of factors in determining the exact percentage to award an eligible whistleblower.

In the award order, the CFTC positively notes that the whistleblower “spoke with Division staff multiple times during the investigation that led to the Covered Action” and that the Commission “has significant interests in preventing, deterring, and punishing” the misconduct in the case.

However, the CFTC negatively notes that the whistleblower “unreasonably delayed in reporting the violations of the Act to the Commission.”

As part of the whistleblower program’s anonymity and confidentiality protections, the CFTC does not disclose any potentially identifying information about whistleblowers, including information on the case they assisted in