CFTC Announces Largest Whistleblower Settlement in Agency History.
Byline: Jennifer Williams-Alvarez
The U.S. Commodity Futures Trading Commission awarded more than $10 million dollars to a whistleblower, according to an April 4 press release from the agency. This is the third award made by the agency's whistleblower program and the largest to date.
"The Whistleblower Program is working," said Christopher Ehrman, the director of the CFTC's Whistleblower Office. "My hope is that this multimillion dollar award will encourage others to come forward with information that will assist the Commission in protecting our markets."
The CFTC's Whistleblower Program, created by the Dodd-Frank Act of 2010, rewards whistleblowers who provide original information about violations of the Commodity Exchange Act that leads to a successful enforcement action. The CFTC also rewards whistleblowers when information results in successful enforcement of a related action brought by another governmental entity. Whistleblowers can receive between 10 to 30 percent of the monetary sanctions collected.
"This award represents a huge step forward for the CFTC," according to Lisa Banks of Katz Marshall & Banks, who represents whistleblowers. "When a whistleblower program is just getting started, whistleblowers need to see clear signals that the enforcing agency is serious--both in terms of holding violators accountable and providing meaningful awards to whistleblowers. Awards like this one show whistleblowers that blowing the whistle is worth the risk."
The last award announced by the CFTC was in September 2015, for approximately $290,000.
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|Publication:||Inside Counsel Breaking News|
|Date:||Apr 8, 2016|
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