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FCPA Blog Daily News

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Wednesday
Mar062019

CFTC awards whistleblower $2 million

The U.S. Commodity Futures Trading Commission (CFTC) announced Monday an award of more than $2 million to an individual whistleblower for original information that led to a successful CFTC enforcement action.

The agency recognized the contribution of the whistleblower in providing critical information through independent analysis of market data, Monday's statement said

In a redacted award order (pdf) released to the public, the CFTC said it denied award applications submitted by four other claimants.

The CFTC protects the confidentiality of whistleblowers by law and doesn't disclose information that might directly or indirectly reveal a whistleblower’s identity.

“I expect more awards to be issued to whistleblowers who provide our Enforcement Division with information based on their expert analysis of market data and to whistleblowers based on related actions," the director of CFTC’s Whistleblower Office Christopher Ehrman said. 

CFTC’s Whistleblower Program was created under Section 748 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and whistleblowers are eligible to receive between 10 and 30 percent of the monetary sanctions collected.

The CFTC can pay awards on CFTC enforcement actions, and related actions brought by other federal regulators if certain conditions are met.

Since issuing its first award in 2014, through 2018, the CFTC has awarded more than $85 million to whistleblowers. 

The Division of Enforcement actions associated with those awards have resulted in sanctions orders totaling more than $675 million.

The program rewards people who voluntarily report violations of the Commodity Exchange Act if the information leads to a successful CFTC enforcement action resulting in sanctions of more than $1 million.

The CFTC is an independent federal agency that regulates the U.S. derivatives markets, including futures, options, and swaps.

Its enforcement division investigates violations of the Commodity Exchange Act and the CFTC Regulations, such as fraud, market manipulation, and illegal trade practices.

The CFTC whistleblower website that was launched in 2016 can be viewed at www.whistleblower.gov.

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Harry Cassin is the publisher and editor of the FCPA Blog.