The Commodity Futures Trading Commission awarded approximately $200 million to a single whistleblower earlier this month based on the individual’s “significant contribution” to the success of a CFTC action and two Related Actions by other enforcement agencies. This is not just the largest award of the CFTC to date under its Dodd-Frank whistleblower program, but larger than any award ever made to a single whistleblower by the SEC under Dodd-Frank. Although the Commission maintains whistleblower confidentiality and its award decision is heavily redacted, the Wall Street Journal reports that the whistleblower tip involved alleged LIBOR manipulation at a Multinational Investment Bank (Germany).
Several key points about this award decision:
To date, whistleblower tips to the CFTC have contributed to enforcement actions resulting in more than $3 billion in monetary sanctions. While the SEC’s whistleblower bounty program has received more publicity, this record-breaking award serves as a reminder to all companies that may come under the jurisdiction of the CFTC that the CFTC also has a robust whistleblower bounty program under Dodd-Frank and the magnitude of this award will no doubt spur a new wave of tips filed with both regulators.
For more information about the whistleblower award provisions of Dodd-Frank, see Orrick’s treatise “Corporate Whistleblowing in the Sarbanes-Oxley/Dodd-Frank Era” published by PLI.