The SEC recently awarded two whistleblowers a total of $98M for original information they submitted that led to the opening of an investigation and a successful enforcement action involving misconduct. The first whistleblower received the lion’s share of the bounty, which totaled over $87 million. For the second whistleblower, the…
On August 8, 2024, the U.S. Commodity Futures Trading Commission (CFTC) announced a whistleblower award of over $1 million dollars. While the Commodity Exchange Act ensures confidentiality protections for CFTC whistleblowers, this award highlights the CFTC’s commitment to regulating digital assets. The heavily redacted CFTC order states that the whistleblower…
Billionaire investor and founder of Hayman Capital Management, Kyle Bass, succeeded in obtaining a reversal of the SEC’s denial of his bid to receive a whistleblower bounty for exposing fraud at United Development Funding (UDF), a Dallas-based land developer. Bass filed a whistleblower tip regarding UDF to the SEC after…
David R. Chase and Scott Silver co-authored an article for the Daily Business Review that advocates for short sellers being allowed to benefit from the SEC Whistleblower Program. Click here to read the full article.
On June 17, 2024, the U.S. Securities and Exchange Commission (SEC) announced a $37 million dollar whistleblower award, marking this the first whistleblower award of 2024. While the Dodd-Frank Act mandates confidentiality regarding the whistleblower’s identity and enforcement action, this substantial award underscores the SEC’s ongoing commitment to investor protection.…
On June 17, 2024, the U.S. Commodity Futures Trading Commission (the “CFTC”) reached a $55 million settlement with Trafigura Trading LLC, marking a significant aggressive shift in the agency’s approach to whistleblower protections. This case sets a new precedent in the CFTC’s enforcement program and underscores the CFTC’s commitment to…
The Commodities Futures Trading Commission (CTFC) announced a whistleblower award of over $4.5 million for information and assistance that led to a successful enforcement action. The individual received an unspecified percentage of the monies collected in fines and sanctions. In the order, the CTFC noted that the individual voluntarily submitted…
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…
The US Department of Justice is planning to launch its own whistleblower program using the same model as the Securities and Exchange Commission (SEC) and Commodities Futures Trading Commission (CFTC). They will offer financial incentives to individuals who report wrongdoing and are ineligible for other rewards. Deputy Attorney General Lisa…
The Commodity Futures Trading Commission’s Whistleblower Office has a new director, Brian Young. The announcement was made recently by CFTC’s chairman, Rostin Behnam. He comes from the Department of Justice (DOJ), where he was previously the acting director of litigation for the Antitrust Division. Brian Young started his career at…