It was announced today that the Commodity Futures Trading Commission (CFTC) will make its first award ($240,000) to a whistleblower as part of the Commission’s Whistleblower Program. The program was created by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. It is left to be seen, however, whether this marks a watershed moment in the agency’s whistleblower program or whether future awards will trickle out similar to the IRS program.
Under the Dodd-Frank Act, the CFTC rewards whistleblowers if their information leads to more than $1 million in monetary sanctions. While the $1 million dollar threshold might seem high, in light of the scope and scale of the cases under Dodd-Frank, it is actually quite reasonable. Like other whistleblower laws, successful whistleblowers who bring forth original information that results in recoveries are eligible for 10 to 30 percent of monies collected by the government. In discussing the initial award, Gretchen Lowe, Acting Director of the CFTC’s Division of Enforcement said, “the whistleblower provided specific, timely and credible information that led to the Commission bringing important enforcement actions. The CFTC’s Whistleblower Program is attracting high-quality tips and cooperation we might not otherwise receive and is already having an impact on the Commission’s enforcement mission.” This statement supports what we in the false claims act and whistleblowing legal community already know, that these programs work and work quite well.
The Director of the Whistleblower Office commented that “[o]ur Whistleblower Program is a necessary enforcement tool for the agency, and my hope is that this award will send the strong message that the CFTC will pay for information that helps us do our jobs.” If you have information about violations of the Commodity Exchange Act or any other activity which resulted in fraud against the government, please feel free to contact us.