On June 3, the CFTC announced a $4.5 million whistleblower award to an individual who provided information and assistance to the CFTC “that was significant in both amount and quality.”

Key Takeaways:

• On June 3, the CFTC announced a $4.5 million whistleblower award
• The whistleblower’s disclosure “was critical to the success of the Covered Action.”
• Since it was established in 2010, the CFTC Whistleblower Program has awarded approximately $370 million to whistleblower

On June 3, the U.S. Commodity Futures Trading Commission (CFTC) announced that it had issued a $4.5 million whistleblower award to an individual who voluntarily provided the agency with original information that led to a successful enforcement action.

According to the CFTC, “The whistleblower provided assistance to the Division of Enforcement (DOE) that was significant in both amount and quality” and “DOE staff greatly relied on the whistleblower’s industry expertise.”

In the award order, the CFTC further notes that the whistleblower’s information “was critical to the success of the Covered Action” and that their “observations were sufficiently specific that the Division was able to confirm with relative ease that the Company was the party engaged in misconduct.”

“This award appropriately rewards a whistleblower who gave valuable information during multiple contacts with DOE staff,” said Director of Enforcement Ian McGinley. “The CFTC especially appreciates the critical role whistleblowers play in our enforcement actions. We recognize it is not always easy to come forward and provide support.”

“A whistleblower need not be an insider to provide the cooperation and information that leads to a successful CFTC enforcement action,” Director of the Whistleblower Office Brian Young noted. “Anyone who provides actionable information – including victims, witnesses, and insiders – may qualify to receive a cash award under the CFTC’s Whistleblower Program.” 

The CFTC Whistleblower Program

Through the CFTC Whistleblower Program, qualified whistleblowers are eligible to receive awards of 10-30% of the sanctions collected in the enforcement action connected with their disclosure. In order to qualify for an award, a whistleblower must make their disclosure voluntarily and must provide information that was not previously known by the CFTC.

The CFTC Whistleblower Program was established in 2010 with the passage of the Dodd-Frank Act. Since it granted its first award in 2014, it has awarded approximately $370 million to whistleblowers. Whistleblowers have allowed the CFTC to recover more than $3.2 billion in monetary sanctions.

Individuals may blow the whistle anonymously to the CTFC if they are represented by an attorney.

This article was authored by Geoff Schweller