Yesterday, the Commodity Futures Trading Commission (CFTC) announced a whistleblower award of $9 million granted to an individual who provided original, credible information to the Commission.
According to a CFTC press release, the timely whistleblower tip led the CFTC to open an investigation and bring successful enforcement action.
“Whistleblowers often face massive risks when reporting frauds,” said whistleblower attorney Stephen M. Kohn, partner at the qui tam law firm Kohn, Kohn & Colapinto. “Whistleblower award laws like the Dodd Frank Act provide incentives for those who come forward to report frauds anonymously and confidentially.”
The Commodity Exchange Act (CEA) allows whistleblowers to receive monetary awards ranging from 10 to 30 percent of the sanctions obtained by the CFTC in a successful enforcement action if the sanctions exceed $1 million.
Since 2014, the CFTC Whistleblower Program has awarded approximately $120 million to whistleblowers, with monetary relief that has saved taxpayers over $950 million.
“Whistleblowers like the individual receiving the award today provide a valuable public service,” added Whistleblower Office Director Christopher Ehrman. “We encourage others to come forward with information regarding possible violations in the markets the CFTC oversees.”