July 4, 2022

Volume XII, Number 185

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Like a Lion: CFTC Awards Approximately $12,125,000 to Seven Whistleblowers in March

March isn’t over yet, but the Commodity Futures Trading Commission has awarded seven whistleblowers approximately $12,125,000 for providing information supporting the CFTC’s enforcement efforts.

One whistleblower earned $10 million because they “voluntarily provided the Commission with original information that led to the successful enforcement of a covered action.” According to the heavily redacted order, the whistleblower came forth with “good background information, interesting color, and some context […] useful at the earliest stages of the investigation.” While the CFTC does not reveal what percentage of the recovery the whistleblower earned, the CFTC awards whistleblowers between 10-30% of the monetary sanctions they collect from wrongdoers. This information led the CFTC to draft the earliest round of subpoenas in that investigation.

The first whistleblowers in March 2022 were awarded approximately half a million dollars for information which helped “expand the scope of an existing investigation and lead the Division to other key evidence.” The order further details that the information “significantly contributed to the success of the Covered Action” and assisted the Commission in obtaining a settlement. The Commission found the information to be of “high quality, reliability, and specificity;” which other financial services whistleblowers should note when contemplating submitting Form TCR.

Most recently, four whistleblowers received $625,000 for “individually or jointly provid[ing] ongoing cooperation and assistance that helped support several of the charges against the defendants,” said the CFTC Acting Director of Enforcement. One whistleblower earned a higher award for providing the most cooperation and assistance to investigators. Some award claimants were denied as the information they provided was neither voluntary nor timely (responding to a CFTC investigation demand does not constitute whistleblowing activity which would qualify someone for an award).

The CFTC’s whistleblower program has been in like a lion and out like a lion this March. Whistleblowers providing reliable and detailed information to the CFTC can continue to “make it rain” in April. When in doubt, contact a whistleblower attorney for a confidential consultation to discuss potentially fraudulent financial schemes.

© 2022 by Tycko & Zavareei LLPNational Law Review, Volume XII, Number 88
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About this Author

Eva Gunasekera WHistleblower and Government Fraud  Attorney Tycko & Zavareei LLP Law Firm
Partner

FORMER DOJ SENIOR COUNSEL FOR HEALTH CARE FRAUD, NOW REPRESENTING WHISTLEBLOWERS

(202) 973-0900
Renée Brooker Whistleblower Lawyer Tycko & Zavareei Law Firm
Partner

FORMER PROSECUTOR IN SENIOR LEADERSHIP POSITION AT DOJ, RESPONSIBLE FOR BILLIONS OF DOLLARS IN RECOVERIES UNDER WHISTLEBLOWER LAWS, NOW REPRESENTING WHISTLEBLOWERS

(202) 417-3664‬
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