CFTC Surpasses $1 Billion in Total Sanctions Resulting from Whistleblower Tips

Today, the Commodity Futures Trading Commission (CFTC) announced a whistleblower award of $3 million granted to an individual whose reporting led the CFTC to bring forth a successful enforcement action. With today’s award, the CFTC Whistleblower Office has now surpassed $1 billion in total sanctions associated with whistleblower awards.

According to the CFTC award order, the whistleblower qualified for an award because they filed a Form TCR containing information of potential violations of the Commodity Exchange Act (CEA). The tip provided by the CFTC whistleblower led to the opening of the investigation.

“This achievement proves that once again, whistleblowers are the most critical component to any successful anti-fraud program,” said whistleblower attorney Stephen M. Kohn, partner at Kohn, Kohn & Colapinto. “Creating confidential reporting channels and providing monetary incentives is the only way to ensure insiders will be protected from retaliation.”

Established as part of the Dodd Frank Act of 2010, the CFTC Whistleblower Office provides for individuals with knowledge of commodities frauds to anonymously file reward claims. Since issuing its first award in 2014, the CFTC has awarded approximately $123 million to commodities fraud whistleblowers.

Both U.S. citizens and non-U.S. citizens can confidentially report crimes to the CFTC Whistleblower Office. It is best practice to use an experienced CFTC whistleblower lawyer when filing with the CFTC Whistleblower Office.

“In many of our actions, whistleblowers’ assistance has been critical in revealing wrongdoing, and their tips ultimately conserve the CFTC’s time and resources,” said CFTC Acting Director of Enforcement Vincent McGonagle.