CFTC Awards Insider Whistleblower Approximately $1.25 Million

The Commodity Futures Trading Commission (CFTC) announced today an award of approximately $1.25 million to a whistleblower. This individual had reported misconduct to the CFTC after initially raising concerns internally within their organization.

The whistleblower, despite facing stricter requirements due to their compliance or internal audit responsibilities, adhered to the CFTC's whistleblower rules by first bringing the matter to the attention of their employer. After the employer failed to take meaningful remedial action within the stipulated time frame of at least 120 days, the whistleblower approached the CFTC with their concerns. Notably, this award marks the first instance of applying the CFTC’s 120-day safe harbor provision to a whistleblower from an entity’s internal compliance or audit function.

Ian McGinley, Director of the Division of Enforcement at CFTC, emphasized the significance of insiders' contributions, stating, "Insiders have some of the most valuable evidence about illegal activity in our markets." McGinley further underscored the risks whistleblowers undertake and acknowledged the pivotal role their information plays in bolstering the CFTC's enforcement efforts.

Brian Young, Director of the Whistleblower Office, highlighted the whistleblower's fulfillment of job duties by first reporting internally and subsequently reaching out to the CFTC when necessary. Young emphasized that the CFTC’s Whistleblower Program rewards employees who take such steps, especially when employers fail to address wrongdoing adequately.

The management of this whistleblower award was overseen by Attorney Advisor Laurence Tai in the Whistleblower Office of the CFTC.

Confidentiality protections for whistleblowers are provided under the Commodity Exchange Act (CEA). The CFTC ensures the anonymity of whistleblowers, refraining from disclosing any information that could reveal their identity except in limited circumstances.

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