The Commodity Futures Trading Commission passed the final rule on Section 23 amending the Commodity Exchange Act to implement incentives and a protection program for whistleblowers. During today’s meeting, the Commission determined that potential whistleblowers will be awarded between 10 percent and 30 percent of sanctions of more than $1 million collected from wrongdoers depending on the significance of the information and the degree of involvement by whistleblowers leading to successful prosecutions of fraudulent cases.
A panel comprised of the agencies’ staffs will be selected to determine the reward amount for tipsters based on individual cases. The CFTC received on average 16 to 24 sanctions of over $1 million a year. The Commission also passed the law governing protection programs available to whistleblowers, which include federal protection against retaliations by employers. In the event of retaliation actions by employers, whistleblowers can potentially get their pay reinstated, and attorney fees incurred during litigation shall be reimbursed by companies seeking legal actions against them.
