CFTC Whistleblower Hot Streak Continues with $9 Million Award
This week, the Commodity Futures Trading Commission (CFTC) announced a new whistleblower award of approximately $9 million, one of the five largest awards ever paid by the agency. It is the latest in a wave of awards—four over the last three months, all over $1 million—demonstrating the CFTC’s strong commitment to its whistleblowers.
These awards make good on CFTC Enforcement Director James McDonald’s pronouncement last May that “Whistleblowers have become an integral part of our enforcement efforts, and I expect that trend to continue going forward.” Since then, the CFTC has continued to pay out large rewards while also releasing a series of “Whistleblower Alerts” highlighting areas where the agency is seeking tips, including market spoofing, cryptocurrency, foreign corrupt practices, and more.
In keeping with its policy of carefully protecting whistleblower identities, the CFTC provided scant details on the tip that led to this week’s massive award. But in announcing the award, Enforcement Director McDonald reiterated the CFTC’s commitment to rewarding whistleblowers: “We recognize that often whistleblowers come forward to report misconduct at great personal and professional risk. Cases like this serve as a reminder that the Whistleblower Program can reward that courage in a very real way, helping to soften the blow of any adverse consequences those whistleblowers might face.”
The CFTC Whistleblower Program was created under the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, which celebrated its 10th-anniversary last week. Under the program, whistleblowers are eligible to receive between 10 and 30 percent of any government recovery by the CFTC or other federal agencies through related enforcement proceedings. To date, the CFTC has awarded approximately $120 million to whistleblowers, much of it in the last three years. The CFTC actions associated with those awards have resulted in monetary relief totaling nearly $950 million, a truly remarkable return on investment.
If you have information about a violation of the Commodity Exchange Act or the CFTC’s rules and regulations, the CFTC wants to hear from you. And you may be eligible for a reward. Our team of experienced whistleblower attorneys can help you navigate the whistleblower process. We have extensive knowledge and years of experience helping our clients successfully expose misconduct and have obtained over $240 million in awards for our clients.
Contact us to discuss your options as a potential whistleblower.
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- What Potential Whistleblowers Need to Know About the Dodd-Frank Act
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