CFTC awards whistleblower $2.5 million

The Commodity Futures Trading Commission awarded a whistleblower $2.5 million Monday for assisting “at every step” of an investigation that led to a successful enforcement action.

The CFTC said it reduced the award because the whistleblower delayed submitting information about the wrongdoing. “Failure to report violations in a timely manner can lead to additional financial loss to customers or the general public,” the CFTC’s redacted award order (pdf) said.

“We hope this case illustrates the importance of reporting violations to the CFTC as soon as reasonably possible,” the CFTC’s James McDonald said.

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

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.

Since issuing its first award in 2014 the CFTC has awarded more than $90 million to whistleblowers.

The CFTC 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 FCPA Blog | June 24, 2019