The Commodity Futures Trading Commission has awarded nearly USD200 million to a whistleblower whose ‘specific, credible, and timely original information’ significantly contributed to an already open investigation and led to a successful enforcement action, as well as to the success of two related actions, by a US federal regulator and a foreign regulator.
According to the order, the whistleblower’s information led the CFTC to important, direct evidence of wrongdoing. In order to qualify for an award, a whistleblower who significantly contributed to the success of an enforcement action must demonstrate that there is a “meaningful nexus” between the information provided and the CFTC’s ability to successfully complete its investigation, and to either obtain a settlement or prevail in a litigated proceeding. The Commission determined here that the whistleblower met this standard.
The whistleblower’s claim in connection with a third related action by a state regulator was denied because the whistleblower’s information was never shared with the state regulator.
With this award, the CFTC has granted whistleblower awards associated with enforcement actions that have resulted in monetary sanctions totalling more than USD3 billion.
