iYesterday, the Commodity Futures Trading Commission (CFTC) issued a $250,000 whistleblower award to an individual who prompted the Commission to open an investigation.
According to the CFTC award order, the anonymous whistleblower would have been granted a larger award if they came forward earlier. The CFTC urgers all whistleblowers with knowledge of violations of the Commodity Exchange Act (CEA) to “come forward promptly and not turn a blind eye.”
CFTC whistleblowers who provide the Commission with original information of commodities fraud can become eligible for whistleblower awards ranging from 10-30% if their reporting results in sanctions exceeding $1 million.
“Time is of the essence when it comes to reporting violations of the Commodity Exchange Act and the CFTC’s rules and regulations,” said Director of Enforcement James McDonald. “A delay in reporting can result in further harm to investors, a delay to the start of a CFTC investigation, and undermines the health of our markets.”
The CFTC Whistleblower Program was established as part of the Dodd Frank Act of 2010 and allows U.S. citizens as well as foreign nationals to qualify for financial rewards anonymously and confidentially.
CFTC and SEC whistleblowers must contact an experienced U.S. whistleblower attorney in order to qualify for an award. It is critical for whistleblowers to consult an expert when they obtain knowledge of securities and commodities frauds.
Ben Kostyack contributed to this article.
