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The CFTC awards a record $200 mln prize to an informant

The Commodity Futures Trading Commission (CFTC) has awarded a record single whistleblower prize of almost $200 million.

According to the press release, this person made a “significant contribution” in the form of key information that led to effective law enforcement in two related cases led by US and foreign regulators. The informant provided information that proved irregularities in the investigation initiated by the CFTC.

To qualify for the award, a whistleblower who has significantly contributed to the success of the enforcement action must demonstrate that there is a “material relationship” between the information provided and the CFTC’s ability to successfully complete an investigation as well as to obtain a settlement or victory in litigation. At this point, the Commission found that the whistleblower met this standard. – the CFTC explained.

$300 million in CFTC awards

Thanks to an award-winning whistleblower, the CFTC has already imposed sanctions totalling more than $3 billion on companies that committed offences or failed to comply with regulations. The CFTC informant program was created based on art. 748 of the Dodd-Frank Act of 2010.

Since 2014, the CFTC has awarded over $300 million in awards to whistleblowers, making it a huge prize is given to an individual under this program. In addition, according to the law, informants are entitled to receive from 10 to 30% of the sanctions imposed and enforced.

The SEC also rewards informants

In September, the US Securities and Exchange Commission (SEC) granted a total of $11.5 million to two whistleblowers who provided key information as part of the regulator’s investigations. Thanks to their help, the SEC was able to enforce the law in force effectively. In one case, the SEC awarded an informant over $7 million, and another whistleblower received over $4.5 million.

The highest-awarding whistleblower played an important role in the proceedings as he led the SEC to launch an infringement investigation. In recent years, the SEC has awarded 212 whistleblowers with awards over $1 billion.

Author: Michał Misiura

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