US regulator awards whistleblower $1m for exposing scheme that violated commodities and futures trading laws

From: RegTech Analyst

The U.S. Commodity Futures Trading Commission (CFTC) has emphasised the need for whistleblowers to step forward with a new reward.

It has given more than $1m to a whistleblower who’s tips enabled the regulator to expose a scheme violating the Commodity Exchange Act, which is a federal law that regulates the commodities and futures trading activities in the country.

The tip-off, which filed through the employer’s internal compliance programme,  eventually led to the CFTC filing charges against the people behind the scheme.

“Today’s award shows how referrals from other regulators can have a meaningful impact on the Commission’s enforcement program, and lead to whistleblower awards from the CFTC,” said James McDonald, director of enforcement at the CFTC. “We are committed to continuing to work with other regulators to maximize the impact and effectiveness of our enforcement and whistleblower programmes.”

Christopher Ehrman, director of the CFTC’s whistleblower office, added, “As the specific facts and circumstances of this matter demonstrate, the whistleblower does not have to identify the exact wrongdoing the CFTC ultimately charges – it is enough for their information to lead CFTC investigators directly to evidence of one or more of the agency’s claims. Here, the whistleblower identified a problem in one area, and our Division of Enforcement used that knowledge and the whistleblower’s subsequent assistance to uncover illegality in another.”

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