The Commodity Futures Trading Commission announced a whistleblower award north of $1 million for a tipster who went through internal compliance at his or her company to get the information to regulators.
The CFTC, which provides confidentiality protections for all whistleblowers, noted the individual “first provided the information through their employer’s internal compliance program to another regulator and then subsequently provided that information directly to the CFTC.” The information resulted in charges filed against an entity for violations of the Commodity Exchange Act (CEA).
The CFTC said the whistleblower award was “significant” because the tip was first received by another regulator and led to evidence of a violation despite the tip itself not forming the basis of the charges.
“[This] award shows how referrals from other regulators can have a meaningful impact on the Commission’s enforcement program, and lead to whistleblower awards from the CFTC,” Director of Enforcement James McDonald said in a news release. “We are committed to continuing to work with other regulators to maximize the impact and effectiveness of our enforcement and whistleblower programs.”
The CFTC’s Whistleblower Program was created under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Since issuing its first award in 2014, the CFTC has doled out approximately $100 million to whistleblowers.
Whistleblowers are eligible to receive between 10 and 30 percent of the monetary sanctions collected, and all whistleblower awards are paid from the CFTC Customer Protection Fund, which is financed entirely through monetary sanctions paid to the CFTC by violators of the CEA.
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