CFTC Awards Over $4.5 Million to Whistleblower in Enforcement Case

The Commodity Futures Trading Commission (CFTC) recently announced it awarded over $4.5 million to a whistleblower who provided detailed information in support of an enforcement action.

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

"This award appropriately rewards a whistleblower who gave valuable information during multiple contacts with DOE staff," according to the CFTC announcement. "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."

The agency also emphasized that whistleblowers do not need to be corporate insiders to be eligible for awards under the program.

"A whistleblower need not be an insider to provide the cooperation and information that leads to a successful CFTC enforcement action," the announcement stated. "Anyone who provides actionable information – including victims, witnesses, and insiders – may qualify to receive a cash award under the CFTC's Whistleblower Program."

The Whistleblower Program was created under the 2010 Dodd-Frank financial reform law. Since issuing its first award in 2014, the CFTC has now granted whistleblower awards totaling approximately $370 million related to enforcement actions resulting in over $3.2 billion in monetary sanctions.

Whistleblowers are eligible to receive between 10% and 30% of the monetary sanctions collected in cases where their voluntary information led to a successful enforcement action. The awards are paid from the CFTC's Customer Protection Fund financed by sanctions from violators.

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