CFTC Awards Two Whistleblowers More Than $1.8M
The Commodity Futures Trading Commission today announced it is awarding more than $1.8 million to two whistleblowers whose information significantly contributed to the successful resolution of enforcement cases involving defrauded investors.
“We are grateful to the whistleblowers for coming forward,” said Cynthia Lie, acting director of the Whistleblower Office. “Like many before them, these whistleblowers showed courage and commitment to the public interest. They provided critical assistance that helped the Commission identify fraud and return unlawfully obtained funds to American investors. We remain committed to rewarding individuals who provide significant information and cooperate with our investigations.”
Whistleblower Officer staff responsible for handling this award are Dan Schiffer, Laurence Tai, and Sherri Borman.
About the CFTC’s Whistleblower Program
The Whistleblower Program was established under Section 748 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Since issuing its first award in 2014, the CFTC has awarded more than $395 million to whistleblowers. Those awards are associated with enforcement actions that have resulted in more than $3.3 billion in monetary sanctions.
The CFTC may issue whistleblower awards based on its own enforcement actions, as well as related actions brought by other domestic or foreign regulators, when certain conditions are met.
The Commodity Exchange Act provides confidentiality protections for whistleblowers. Whether or not CFTC issues an award, the agency does not disclose information that could reasonably be expected to reveal a whistleblower’s identity, except in limited circumstances. Consistent with these protections, the CFTC does not disclose the specific enforcement action or the exact award amount.
Eligible whistleblowers may receive between 10 and 30 percent of the monetary sanctions collected. All awards are paid from the CFTC’s Customer Protection Fund, which Congress established and is funded entirely through monetary sanctions paid to the CFTC by CEA violators. No money is taken or withheld from harmed customers to fund the program.
Anyone with information related to potential CEA or CFTC violations may submit a tip electronically by filing a Form TCR (Tip, Complaint or Referral) online.
Visit Whistleblower.gov for more information about CFTC’s Whistleblower program.