Whistleblower Receives $300,000 Award from CFTC
On September 27, the U.S. Commodity Futures Trading Commission (CFTC) issued a whistleblower award for $300,000. The awarded whistleblower provided the CFTC with original information which caused the agency to open an investigation that resulted in a successful enforcement action.
According to the CFTC, the whistleblower provided a “particularly informative tip” which “precisely and accurately” described the misconduct. The CFTC further notes that the whistleblower “assisted [Division of Enforcement (DOE)] staff multiple times during the investigation, provided additional evidence, interpreted it for DOE staff, and conserved substantial resources for the CFTC.”
“We are pleased the Commission has granted this award to an outstanding whistleblower,” said Whistleblower Office Acting Director Christina McGlosson. “The Whistleblower Office remains committed to rewarding meritorious whistleblowers for their valuable contributions to the CFTC’s enforcement efforts.”
Through the CFTC Whistleblower Program, qualified whistleblowers are entitled to awards of 10-30% of the funds collected by the government in the enforcement action aided by their whistleblowing. Since it was established in 2010, the program has paid out nearly $350 million in whistleblower awards.
While the CFTC Whistleblower Program has been remarkably successful, recovering over $3 billion from fraudsters, it is currently facing a funding crisis threatening to undermine the program. Kohn, Kohn & Colapinto founding partner Stephen M. Kohn outlined the funding crisis and the urgent need to pass the CFTC Whistleblower Fund Improvement Act in a recent article for Law360.
[/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]
