CFTC Announces Second Whistleblower Award Under Dodd-Frank | Practical Law

CFTC Announces Second Whistleblower Award Under Dodd-Frank | Practical Law

The CFTC issued a whistleblower award of approximately $290,000 in exchange for information about violations of the Commodity Exchange Act. This is only the second whistleblower award the CFTC has issued since the program was introduced in 2010 under the Dodd-Frank Act.

CFTC Announces Second Whistleblower Award Under Dodd-Frank

Practical Law Legal Update w-000-6280 (Approx. 3 pages)

CFTC Announces Second Whistleblower Award Under Dodd-Frank

by Practical Law Finance
Published on 01 Oct 2015 • USA (National/Federal)
The CFTC issued a whistleblower award of approximately $290,000 in exchange for information about violations of the Commodity Exchange Act. This is only the second whistleblower award the CFTC has issued since the program was introduced in 2010 under the Dodd-Frank Act.
On September 29, 2015, the CFTC announced an award of approximately $290,000 to a whistleblower in exchange for information provided about violations of the Commodity Exchange Act (CEA).
The CFTC's whistleblower program, introduced under the Dodd-Frank Act, grants monetary awards to individuals for reporting CEA violations if that information leads to more than $1 million in monetary sanctions (7 U.S.C. § 26). Whistleblowers are eligible to receive between 10% and 30% of monies collected in the related enforcement action.
The CFTC is also allowed to grant awards based on related sanctions by other agencies in connection with information provided to it. The program is designed to bring cases more quickly to the attention of CFTC staff and includes protections against employer retaliation.
This marks only the second time that the CFTC has granted a whistleblower award. On May 20, 2014, the CFTC issued an award of $240,000. All awards are taken from the CFTC Customer Protection Fund.