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CFTC Awards $4 Million To Whistleblowers, Citing Disclosure Timing
11/19/2024On November 12, 2024, the Commodity Futures Trading Commission (“CFTC”) awarded nearly $4 million to two whistleblowers who provided information leading to a successful enforcement action. In awarding the sum, the CFTC considered the timeliness of the disclosures, ultimately granting a larger sum to the whistleblower who reported first and a lesser sum to the second whistleblower. In re of Claims for Award by [Redacted], CFTC Whistleblower Award Determination No. 25-WB-01 (Nov. 8, 2024).
The CFTC acknowledged that both whistleblowers provided critical information to the CFTC in aid of its investigation and subsequent successful enforcement action. But while the second whistleblower’s disclosure aided in the investigation by providing information on the continued unlawful conduct, the first whistleblower’s information led to the CFTC opening the investigation. Both whistleblowers were eligible for a reward under the CFTC’s Whistleblower Program, but a greater share was due to the first whistleblower, where the second whistleblower’s reporting was delayed.
“This is a perfect example of how the whistleblower rules allow for increased awards for timely initial reports … while also providing a decreased award for those who unreasonably delay reporting,” commented Brian Young, the CFTC’s Whistleblower Office Director.
The CFTC’s unequal distribution of the whistleblower reward demonstrates the importance of reporting alleged wrongdoing early and shows the CFTC’s commitment in encouraging individuals to avoid delay.
