Three CFTC Whistleblowers Awarded Combined $45M
Three unidentified whistleblowers will be given more than $45 million combined by the U.S. Commodity Futures Trading Commission for their roles in enforcement actions that resulted in sanctions.
The CFTC Whistleblower Program
The CFTC whistleblower reward program was created under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 to reward whistleblowers who give the agency information about violations of the Commodity Exchange Act that lead to a successful enforcement action.
For eligible whistleblowers, awards range between 10 percent and 30 percent of the monetary sanctions paid by the offenders. The award percentage is based on the involvement of the whistleblower; individuals who testify at trial are awarded more than those who merely provide useful information.
Since the U.S. Commodity Futures Trading Commission (CFTC) launched the whistleblower reward program in 2011, they have given nine awards to whistleblowers for their efforts. Two of the awards were given in July 2017 – a record $30 million award and the first-ever award to a foreign whistleblower.
The chairman of the CFTC, J. Christopher Giancarlo, said in a statement, “I hope that today’s awards encourage anyone with knowledge of violations of the Commodity Exchange Act to come forward and become a whistleblower.”
SEC Whistleblower Program as Proving Successful
Under the Dodd-Frank Act, the Securities and Exchange Commission launched a similar whistleblower program that also has proven to be successful. In April the agency said that it has awarded $266 million to 55 whistleblowers since the launch of the program in 2012. According to the SEC, $90 million of the awards have been given the past nine months.
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