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Whistleblower Receives $8 Million CFTC Award for Aiding Multiple Enforcement Actions
Tuesday, June 18, 2024

On June 17, the CFTC announced an $8 million whistleblower award to an individual whose information and assistance contributed to the success of multiple enforcement actions

Key Takeaways

  • On June 17, the CFTC announced an $8 million whistleblower award
  • The whistleblower “enabled the CFTC and other agencies to more efficiently investigate and prosecute the misconduct.”
  • Since it was established in 2010, the CFTC Whistleblower Program has awarded approximately $380 million to whistleblowers

On June 17, the U.S. Commodity Futures Trading Commission (CFTC) announced an $8 million whistleblower award issued to an individual whose whistleblowing led to the CFTC and other agencies bringing multiple enforcement actions. 

The whistleblower voluntarily provided the CFTC with original information about derivatives market participants who deceived clients about key aspects of trades.

Through the CFTC Whistleblower Program, qualified whistleblowers are eligible to receive monetary awards of 10-30% of the funds collected by the CFTC in the enforcement action aided by their disclosure. Under the program’s related action provisions, whistleblowers are also eligible to receive awards based upon funds collected in actions brought by other agencies if their whistleblowing also contributed to their success.

“This is an important whistleblower whose information led multiple regulators to bring multiple enforcement actions,” said Director of Enforcement Ian McGinley. “The whistleblower’s assistance enabled the CFTC and other agencies to more efficiently investigate and prosecute the misconduct.”

According to the CFTC, the whistleblower “provided direct evidence of not only the whistleblower’s own intent in the relevant transactions, but also the whistleblower’s knowledge and observations about clients, co-workers, and senior leadership at the liable entity or entities.”

“This ultimately saved substantial time and resources for staff and resulted in a far stronger and more triable case in the event of litigation,” the agency further states.

“Based on the whistleblower’s involvement in the underlying conduct, the whistleblower provided extremely valuable insider information at a critical time during the investigations,” said Whistleblower Office Director Brian Young.

The CFTC Whistleblower Program

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

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