CFTC Awards Whistleblower Over $18 Million for Vital Assistance in Enforcement Actions

The Commodity Futures Trading Commission (CFTC) has announced a substantial whistleblower award of over $18 million to an individual who played a pivotal role in providing essential information and assistance during a CFTC enforcement action and a related investigation conducted by another agency. The whistleblower's contributions included significant, high-quality support to the CFTC's Division of Enforcement (DOE) and critical communications with the other agency, which ultimately led to the resolution of the related action.

The recognition of this whistleblower's invaluable input underscores the importance of individuals coming forward with vital information and cooperating with regulatory authorities. Such collaboration is essential for the effective enforcement of regulations and upholding the integrity of financial markets.

Ian McGinley, Director of the Division of Enforcement, expressed the CFTC's gratitude for the whistleblower's essential role in these cases. He noted that the information provided was significant both in terms of quantity and quality, significantly reducing the CFTC's resource utilization in its enforcement efforts.

The Whistleblower Office's Acting Director, Christina McGlosson, emphasized the continued commitment to incentivizing whistleblowers to report actionable information directly to the CFTC. The award not only recognizes the whistleblower's contribution to the CFTC's investigations but also acknowledges the critical assistance provided to another agency, demonstrating the far-reaching impact of whistleblowers in ensuring financial market integrity.

The CFTC's Whistleblower Program, established under Section 748 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, has been instrumental in encouraging individuals to come forward with information regarding violations of the Commodity Exchange Act (CEA). Since its inception, the program has granted whistleblower awards totaling approximately $365 million. These awards are associated with enforcement actions resulting in monetary sanctions exceeding $3 billion.

Whistleblowers may receive between 10 and 30 percent of the monetary sanctions collected, as determined by the CFTC. The funds for whistleblower awards are provided from the CFTC's Customer Protection Fund, established by Congress, and are solely financed by monetary sanctions paid by CEA violators. Importantly, no funds are deducted from harmed customers to fund the whistleblower program.