On November 22, the U.S. Commodity Futures Buying and selling Fee (CFTC) announced two whistleblower awards totaling almost $1 million issued to people who voluntarily supplied the company with unique info that led to the success of the identical enforcement motion.
By way of the CFTC Whistleblower Program, certified whistleblowers are entitled to financial awards of 10-30% of the sanctions collected by the federal government in reference to their disclosure.
According to the CFTC’s award order, each whistleblowers “provided significant information and substantial assistance to [CFTC] staff.” Nonetheless, the CFTC allotted the next award proportion to the primary of two whistleblowers “because of the key role that [the whistleblower’s] information played in causing the Division to open the investigation that led to the Covered Action and focusing the Division’s efforts during the investigation’s earliest stages.” Whereas the second whistleblower’s info was invaluable, their disclosure was made when the investigation was ongoing and was thus deemed by the CFTC to be much less vital.
“It is not always the case that the first tipster gets a higher award, but in this case, where both claimants significantly contributed to the action, it was the first claimant’s information that played a key role in leading the CFTC to open an investigation,” stated CFTC Whistleblower Workplace Director Christopher Ehrman. “This matter demonstrates that whistleblowers can receive an award for their role in causing the CFTC to open an investigation or for significantly contributing to an already open investigation, or both.”
On October 21, the CFTC issued a $200 million whistleblower award, the biggest single award ever granted underneath the Dodd-Frank Act. Total, since issuing its first award in 2014, the CFTC has granted whistleblower awards amounting to roughly $300 million.
“The CFTC’s Whistleblower Program already made history with the announcement of the largest-ever Dodd-Frank Act whistleblower award last month,” stated CFTC Appearing Director of Enforcement Vincent McGonagle. “The CFTC will continue to reward deserving whistleblowers who help the CFTC root out misconduct.”
Geoff Schweller additionally contributed to this text.