SEC Whistleblower Lawyer Blog
The latest $1.25 million award from the Commodities Futures Trading Commission (CFTC) goes to a whistleblower who first reported misconduct internally to their employer, who then ignored the report. Following 120 days of the company’s inaction, the individual submitted the information to the CFTC, who immediately opened an investigation.
As part of the CFTC’s “safe harbor” rule, the whistleblower must wait 120 days after reporting internally before submitting information. This is the first time the CFTC’s 120-day “safe harbor” provision has applied to a whistleblower who worked in an auditing or internal compliance capacity. Individuals in these positions have more stringent requirements. This whistleblower complied with those requirements when reporting.
The information from the whistleblower was original and given voluntarily. It was the only reason the CFTC opened its investigation. The information “was quite significant,” according to the order, calling it “useful” during the investigation.
However, the CFTC’s Division of Enforcement staff had no contact with the whistleblower other than receiving the information. There was no interaction with the individual, nor any additional assistance from them.
In a statement, CFTC Whistleblower Office Director Brian Young said, “The whistleblower first reported internally, fulfilling job duties and putting the entity on notice of its wrongdoing. The CFTC’s Whistleblower Program rewards employees with compliance and audit responsibilities who first raise violations internally and then contact the CFTC if the employer sits on its hands.”
Although the whistleblower received $1.25 million, the CFTC did not release the percentage of financial recovery.
As always, the identities of the whistleblower and employer are confidential, except in limited circumstances. The CFTC also did not reveal the exact dollar amount of financial recovery nor the nature of the enforcement action to protect everyone involved.
Retaining Experienced CFTC Whistleblower Attorneys
Whistleblowers help everyone by notifying the CFTC of conduct that harms the investing public, while also earning financial compensation for themselves. Hiring experienced CFTC counsel may increase the probability that an investigation will be initiated based on your information. If you wish to remain anonymous, you must be represented by an attorney, who will submit everything on your behalf.
Silver Law Group and the Law Firm of David R. Chase jointly have experienced CFTC and SEC whistleblower lawyers, including a former SEC Enforcement attorney on the team, so you will always have guidance throughout the process. Our SEC whistleblower attorneys can help you if you have information regarding securities or investment fraud, violations of federal securities laws, false filings, market manipulation, or other misconduct. You must provide timely, credible, and original information or analysis to be eligible.
Contact us through our online form or at (800) 975-4345 for a consultation. Our attorneys work on a contingency fee basis. This means that it costs you nothing to hire us, and we collect our fees only if you receive an SEC bounty. Because we get paid when you do, we have the incentive to help you collect the maximum award available.