The Commodity Futures Trading Commission (CFTC) recently announced an award of approximately $4 million to a whistleblower who provided the commission with credible, specific information that led to a successful enforcement action.
It was a milestone case for the CFTC, which surpassed $1 billion in total sanctions associated with whistleblower awards because of the case.
Filing claims with the CFTC
The CFTC Whistleblower Program was established as a part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. It didn’t issue its first award until 2014, but since then has awarded approximately $123 million to whistleblowers.
Much like with the Securities and Exchange Commission’s whistleblower program, the CFTC program protects the identities of its whistleblowers, refraining from disclosing any information that could potentially reveal their identity, including the nature of the enforcement actions and even the exact dollar amount of awards.Whistleblowers in the program are able to receive a 10 to 30 percent cut of any sanctions collected, with the money paid out of the CFTC Consumer Protection Fund, financed entirely by monetary sanctions paid to the CFTC by violators. Would-be whistleblowers looking to get a recovery by submitting this information must have credible, unique and timely information that substantially assists in the agency being able to successful conduct an enforcement action.
Interested in learning more about the CFTC program and how to submit a tip of your own? Contact an experienced whistleblower lawyer at Kardell Law Group to discuss your case and the information you have.