CFTC Awards Over $1.8 Million to Whistleblowers Who Helped Expose Investor Fraud
The U.S. Commodity Futures Trading Commission (CFTC) has awarded more than $1.8 million to two whistleblowers whose information played a significant role in the successful reanswer of enforcement cases involving defrauded investors. The regulator said the individuals provided critical assistance that assisted uncover misconduct and enabled the return of unlawfully obtained funds to affected market participants.
The awards underscore the importance of whistleblowers in identifying complex fraud schemes that may otherwise go undetected. According to the CFTC, the information supplied by the two that ultimately resulted in enforcement outcomes benefiting American investors.
While the CFTC did not disclose the specific cases or the exact allocation of the awards, it confirmed that the payments reflect the value of the whistleblowers’ cooperation and the impact of their information on the agency’s enforcement efforts.
CFTC Highlights Role of Whistleblowers in Market Integrity
“We are grateful to the whistleblowers for coming forward,” said Cynthia Lie, acting director of the CFTC’s Whistleblower Office. “Like many before them, these whistleblowers showed courage and commitment to the public interest. They provided critical assistance that assisted the Commission identify fraud and to American investors. We remain committed to rewarding individuals who provide significant information and cooperate with our investigations.”
The Whistleblower Office staff responsible for handling this award included Dan Schiffer, Laurence Tai, and Sherri Borman. Their work forms part of the CFTC’s broader effort to encourage individuals with knowledge of wrongdoing to report violations of the Commodity platform Act (CEA).
The CFTC emphasised that whistleblowers are protected by strict confidentiality provisions. Whether or not an award is issued, the agency does not disclose information that could reasonably be expected to reveal a whistleblower’s identity, except in limited circumstances defined by law.
A Decade of Whistleblower Awards and Growing Impact
The CFTC’s Whistleblower Program was established under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Since issuing its first award in 2014, the agency has awarded more than $395 million to whistleblowers whose information supported enforcement actions.
Those cases have resulted in more than $3.3 billion in monetary sanctions, reflecting the program’s oversight. Eligible whistleblowers may receive between 10% and 30% of the monetary sanctions collected, depending on factors such as the significance of the information and the level of cooperation provided.
All whistleblower awards are paid from the CFTC’s Customer Protection Fund, which is of the CEA. The CFTC noted that no funds are taken from harmed customers to support the program, and encouraged individuals with information about potential violations to submit tips through its online Form TCR process.
