The CFTC Also Has a Whistleblower Program

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On September 11, 2020, the CFTC announced monetary awards to two whistleblowers who provided specific, credible, and timely information leading the CFTC to open an investigation into fraudulent activity perpetrated by wrongdoers in the futures and commodities markets. The whistleblowers continued to assist the CFTC over the course of the investigation, which ultimately helped lead to a successful enforcement action.

The CFTC’s Whistleblower Program was created under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and has resulted in approximately $120 million in awards to whistleblowers since 2014. Under the Commodity and Exchange Act, whistleblowers who provide information through the program receive confidentiality protections and are eligible to receive between 10 and 30 per cent of the monetary sanctions collected by the CFTC. Since the inception of the program, the CFTC has recovered nearly $950 million in monetary relief as a result of the information and assistance provided by the whistleblowers.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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