This past summer, the U.S. Commodity Futures Trading Commission (CFTC) awarded $50,000 to a whistleblower for information provided to the agency. This was the fourth award CFTC has paid out through its whistleblower program, which was created as part of the Dodd-Frank Act of 2010. It was also the second awarded so far in 2016.
The details on these awards are usually not disclosed, and so there’s little further information available on who received it and the type of information the CFTC received. In general, the agency pays out award to whistleblowers who voluntarily offer information on Commodity Exchange Act (CFA) violations, if that information leads to an enforcement action with penalties at or above $1 million.
Through the program, whistleblowers may receive between 10 and 30 percent of the money the CFTC collects in enforcement actions. This money comes from the CFTC Customer Protection Fund, which is supported entirely by sanctions.
To date, the CFTC has paid out about $10.6 million to whistleblowers — with one of those being a $10 million award. The SEC, the other federal agency that awards whistleblowers, has paid out more than $85 million to 32 different individuals, with its highest single amount awarded being $30 million.
The protections and potential awards provided through the Dodd-Frank Act give whistleblowers more options when it comes to exposing wrongdoing within their businesses or organizations. If you would like to learn more, while protecting your best interests, consult a knowledgeable Dallas attorney at Whistleblower Law for Managers today.