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The Commodity Futures Trading Commission today announced a whistleblower award of approximately $700,000. The whistleblower information prompted the CFTC to open the investigation and described the misconduct that ultimately appeared in the order. The whistleblower also provided substantial assistance and helped the Commission conserve resources during the investigation. The award was reduced because of an unreasonable delay in reporting the violations and the whistleblower’s culpability.
“Whistleblowers often provide the most valuable evidence about wrongdoing,” said Brian Young, director of the Division of Enforcement. “Today’s award recognizes the courage it takes to come forward to the CFTC, as well as the critical role whistleblowers play in the CFTC’s enforcement efforts.”
“We appreciate that the Commission granted this award to a whistleblower who provided key evidence and helped the CFTC interpret it,” said Cynthia Lie, acting director of the CFTC’s Whistleblower Office. “The Whistleblower Office is committed to rewarding whistleblowers for their significant contributions in identifying fraud, manipulation, and abuse in commodity markets.”
Acting Associate Director Dan Schiffer and Senior Attorney Advisor Laurence Tai of the Whistleblower Office handled this whistleblower award.
About the CFTC’s Whistleblower Program
The Whistleblower Program was created under Section 748 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Since issuing its first award in 2014, the CFTC has granted whistleblower awards amounting to approximately $390 million. Those awards are associated with enforcement actions that have resulted in monetary sanctions totaling over $3.2 billion. The CFTC issues awards related not only to the agency’s enforcement actions, but also in connection with related actions brought by other domestic or foreign regulators, if certain conditions are met.
The Commodity Exchange Act provides confidentiality protections for whistleblowers. Regardless of whether the CFTC grants an award, the CFTC will not disclose any information that could reasonably be expected to reveal a whistleblower’s identity, except in limited circumstances. Consistent with this confidentiality protection, the CFTC will not disclose the name of the enforcement action in which the whistleblower provided information or the exact dollar amount of the award granted.
Whistleblowers may be eligible to receive between 10 and 30 percent of the monetary sanctions collected. All whistleblower awards are paid from the CFTC’s Customer Protection Fund, which was established by Congress, and is financed entirely through monetary sanctions paid to the CFTC by violators of the CEA. No money is taken or withheld from injured customers to fund the program.
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Anyone with information related to potential violations of the CEA or the CFTC’s rules and regulations can submit a tip electronically by filing a Form TCR (Tip, Complaint or Referral) online.
Visit Whistleblower.gov for more information about CFTC’s Whistleblower program.
