CFTC Whistleblower Program Awards Whistleblower who was “Heavily Relied” on During Investigation
Yesterday, the Commodity Futures Trading Commission (CFTC) awarded a whistleblower who assisted the Commission by providing information that led to an enforcement action under the Commodity Exchange Act (CEA).
According to the CFTC Whistleblower Office award order, the information the whistleblower provided was “sufficiently specific, credible, and timely to cause the Commission to open an investigation.”
“Claimant 1 also provided Commission staff with assistance throughout the course of the Commission’s investigation, including crucial information that Commission staff heavily relied on against the defendant.”
Financial awards are available to U.S. citizens and non-U.S. citizens who blow the whistle on potential commodities frauds. Similar to other qui tam whistleblower reward laws, the CFTC Whistleblower Program grants awards to anonymous and confidential claimants based on sanctions recovered from enforcement actions.
“Despite the coronavirus pandemic, the CFTC continues to process whistleblower awards,” said Stephen M. Kohn, whistleblower attorney at Kohn, Kohn & Colapinto. “This is critical for ensuring accountability and protecting the public interest.”
Whistleblowers who voluntarily provide the CFTC with original information of violations of the CEA that lead to successful enforcement actions resulting in $1,000,000 or more in sanctions can qualify for awards. Monetary awards range between 10 and 30% of the amount recovered.
Ben Kostyack also contributed to this article.