The Commodity Futures Trading Commission (CFTC) has announced that it will award more than $1.8 million to two whistleblowers. The information provided by these individuals played a significant role in the resolution of enforcement cases involving investor fraud.
“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.”
The staff members responsible for handling this award include Dan Schiffer, Laurence Tai, and Sherri Borman.
The CFTC’s Whistleblower Program was created under Section 748 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Since its first award in 2014, the program has distributed over $395 million to whistleblowers whose tips have contributed to enforcement actions resulting in more than $3.3 billion in monetary sanctions.
Whistleblower awards can be granted based on CFTC enforcement actions or related actions by other domestic or foreign regulators when certain requirements are met. The Commodity Exchange Act ensures confidentiality for whistleblowers, meaning their identities are protected except in specific situations where disclosure is required by law.
Eligible whistleblowers may receive between 10% and 30% of monetary sanctions collected as a result of their information. All awards come from the Customer Protection Fund, which is funded solely through monetary sanctions paid by violators of the Commodity Exchange Act; no funds are taken from harmed customers.
Individuals with information about possible violations can submit tips electronically via Form TCR on the CFTC’s website. More details about the program can be found at Whistleblower.gov.
