September 29, 2015

CFTC to Issue Whistleblower Award of Approximately $290,000

Whistleblower Provided Valuable Information about Violations of the Commodity Exchange Act, which Resulted in an Enforcement Action

Washington, DC — The U.S. Commodity Futures Trading Commission (CFTC) today announced that it will make an award of approximately $290,000 to a whistleblower for providing valuable information about violations of the Commodity Exchange Act (CEA).

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the CFTC’s Whistleblower Program provides monetary awards to persons who report violations of the CEA if the information leads to an enforcement action that results in more than $1 million in monetary sanctions.  

Whistleblowers are eligible for 10 percent to 30 percent of monies collected.  The CFTC can also pay awards based on monetary sanctions collected by other authorities in actions that are related to a successful CFTC enforcement action, and are based on information provided by a CFTC whistleblower.  The Dodd-Frank Act whistleblower provisions also prohibit retaliation by employers against employees who provide the CFTC with information about possible violations, or who assist the CFTC in any investigation or proceeding based on such information.

Aitan Goelman, the Director of the Division of Enforcement, stated, “Receiving high quality information from whistleblowers is an essential part of the CFTC’s overall enforcement program.  Such information allows the staff to bring cases more quickly and with fewer agency resources, and we will continue to provide financial incentives for people with specific and credible information about violations of the CEA to come forward.”

According to Christopher Ehrman, the Director of the CFTC’s Whistleblower Office, “The Whistleblower Office continues to receive high quality information from whistleblowers on a regular basis. The number of tips, complaints and referrals that we receive continues to grow year over year. We are committed to whistleblowers, and we value the information that they provide.”

This is the second whistleblower award to be issued by the CFTC. The CFTC issued its first whistleblower award of $240,000 on May 20, 2014 (see CFTC Press Release 6933-14).  All whistleblower payments are made out of the CFTC Customer Protection Fund established by Congress that is financed entirely through monetary sanctions paid to the CFTC by violators of the CEA.  To learn more about the CFTC’s Whistleblower Program and how to provide a tip, visit http://www.cftc.gov/ConsumerProtection/WhistleblowerProgram/index.htm. 

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Dennis Holden
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Last Updated: September 29, 2015