The U.S. Commodity Futures Trading Commission (CFTC) issued its largest whistleblower award to date – more than $10 million – for information that led to a significant enforcement action.
This is only the third time the CFTC has bestowed money on a whistleblower since the Dodd-Frank Act was signed into law in 2010. In the other two instances, sums of $240,000 and $290,000 were awarded, a paltry sum by comparison.
As is usual in whistleblower matters, the award notice keeps information confidential about the tipster and the target of the enforcement action. The CFTC is required by law to keep secret any information that could divulge the identity of the tipster.
How is Whistleblower Action Rewarded?
Under the CFTC’s whistleblower program, eligible tipsters can receive from 10 to 30 percent of any money collected from enforcement actions where tipster information played a crucial role. Whistleblowers also may receive payment if their tips lead to enforcement from another agency when the CFTC also brings an action. In this matter, the CFTC did not disclose the percentage used in determining the award but indicated it was toward the upper limit, with factors, such as timeliness, credibility, and continued cooperation all contributing factors in determining the award amount.
Are You Considering Whistleblower Action?
Compared to the SEC, the CFTC has been much slower at issuing awards, but this could be a sign of new things to come. If you have information about your company’s wrongful actions, the attorneys at Dimond Kaplan & Rothstein, P.A. can evaluate your claim. Contact us to schedule an appointment or consultation today.