CFTC Announces First Whistleblower Award
The U.S. Commodity Futures Trading Commission’s whistleblower program was created as part of the Dodd-Frank Act. Under the program, the CFTC will provide awards to whistleblowers who report violations of the Commodity Exchange Act when the information leads to an action that results in more than $1 million in sanctions. Today, the CFTC announced its first whistleblower award.
Although the CFTC did not disclose the identity of the whistleblower or the enforcement action that resulted from the information provided, it did confirm that the person will receive approximately $240,000. Gretchen Lowe, Acting Director of the CFTC’s Division of Enforcement, said that the “whistleblower provided specific, timely and credible information that led to the Commission bringing important enforcement actions.” With respect to the types of information being reported by whistleblowers, Ms. Lowe said that the program “is attracting high-quality tips and cooperation we might not otherwise receive and is already having an impact on the Commission’s enforcement mission.”
No doubt, the establishment of a whistleblower program and awards in connection with information provided as part of that program will encourage more people to report. It remains to be seen, however, the true impact these programs have on enforcement activity.