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The Commodities Futures Trading Commission (CFTC) has announced an award of nearly $4 million to two whistleblowers who notified the agency of a company's misconduct. Both individuals provided sufficient original information to lead to a successful enforcement action. Whistleblower #1 initially notified the CFTC of this misconduct and supplied key information. The CFTC opened its investigation based on the information submitted by Whistleblower #1. Whistleblower #2 also provided additional information which included the admission that the misconduct was ongoing and continuing. While Whistleblower #2 also provided “substantial assistance,” they also “unreasonably delayed” giving information to the CFTC. This led to a reduction of the award amount, which was not disclosed. Three additional whistleblowers were denied an award and did not seek reconsideration by the CTFC's Claims Review Staff (CRS.) Claimant #3’s information was already in the record with no original information submitted.The Commodities Futures Trading Commission (CFTC) has announced an award of nearly $4 million to two whistleblowers who notified the agency of a company’s misconduct.

Both individuals provided sufficient original information to lead to a successful enforcement action. Whistleblower #1 initially notified the CFTC of this misconduct and supplied key information. Continue reading

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The SEC (US Securities and Exchange Commission) has exacting criteria for both submission of whistleblower tips and their issuance of any financial bounties, including the amounts. How SEC Whistleblower Awards Are Determined The general rule for the award amount is 10% to 30% of all monetary fines collected from the entities in question based on a judgment in excess of $1 million. The money is not taken from investor funds. The fines and other civil penalties imposed on and collected from those involved in misconduct goes into the fund that pays the SEC’s whistleblower awards. Occasionally other federal agencies separately offer their own awards in addition to the SEC’s bounties. They are awarded and calculated separately from the SEC’s. The awards are not made automatically, and the whistleblower must submit a claim them once the case is published on the SEC’s website.The SEC (US Securities and Exchange Commission) has exacting criteria for both submission of whistleblower tips and their issuance of any financial bounties, including the amounts.

How SEC Whistleblower Awards Are Determined

The general rule for the award amount is 10% to 30% of all monetary fines collected from the entities in question based on a judgment in excess of $1 million. The money is not taken from investor funds. The fines and other civil penalties imposed on and collected from those involved in misconduct goes into the fund that pays the SEC’s whistleblower awards. Continue reading

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The SEC has released figures for recovery and returns for the Fiscal Year 2023. The press release details the record high $600 million paid to SEC whistleblowers, and the recovery of nearly $5 billion through a total of 784 enforcement actions, the second highest in history. Actions resulted in nearly $1 billion in returns to defrauded investors. FY2023 Statistics The SEC’s FY2023 year end results are: SEC whistleblower awards of $600 million, including a record $279 million awarded to a single whistleblower, paid with funds from administrative and financial penaltiesThe SEC has released figures for recovery and returns for the Fiscal Year 2023. The press release details the record high $600 million paid to SEC whistleblowers, and the recovery of nearly $5 billion through a total of 784 enforcement actions, the second highest in history. Actions resulted in nearly $1 billion in returns to defrauded investors. Continue reading

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The SEC announced an award of $279 million to an individual for substantial assistance in an enforcement action. It’s the largest award in the history of the SEC’s Whistleblower program. The previous record for an award was made in October of 2020, when a whistleblower received $114 million. While the whistleblower did not submit the original information that initiated the SEC investigation, the information provided, and assistance afforded, by the whistleblower “expanded the scope of misconduct charged," according to Creola Kelly, Chief of the SEC’s Office of the Whistleblower. Their continued involvement and assistance included numerous interviews and many written submissions that greatly assisted the SEC’s investigation. Two additional whistleblowers were deemed ineligible. Their claims were denied after the SEC determined that neither one submitted information that led to or assisted in any successful enforcement of a covered action.  The SEC announced an award of $279 million to an individual for substantial assistance in an enforcement action. It’s the largest award in the history of the SEC’s Whistleblower program. The previous record for an award was made in October of 2020, when a whistleblower received $114 million. Continue reading

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The SEC announced another whistleblower bounty that paid nearly $3.5 million to four individuals. Jointly, three whistleblowers provided information to the SEC that led to the staff opening an investigation. The investigation led to a successful enforcement action by the SEC. Additionally, that information and investigation led to another agency opening its own investigation, culminating in a separate enforcement action. The fourth whistleblower used publicly available information to offer additional insights to the SEC. This information and analysis showed additional allegations to the staff that furthered the investigation. However, this whistleblower was “an outsider not affiliated with the Company.”  The individual’s analysis from public information was highly detailed and took considerable time and effort to research and collate, such as changes in the company’s stock pricing. The report submitted to the SEC took approximately seven weeks to complete.The SEC announced another whistleblower bounty that paid nearly $3.5 million to four individuals.

Jointly, three whistleblowers provided information to the SEC that led to the staff opening an investigation. The investigation led to a successful enforcement action by the SEC. Additionally, that information and investigation led to another agency opening its own investigation, culminating in a separate enforcement action. Continue reading

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The Commodities Futures Trading Commission (CFTC) recently awarded a bounty of $10 million to a whistleblower who offered original information voluntarily. The information led to the opening of an investigation and a subsequent successful enforcement action. According to the order, the individual provided the information properly via a Form TCR that involved information previously unknown to the CFTC, and in violation of the Commodity Exchange Act (CEA.) The whistleblower was under no obligation to provide this information, and provided it at the outset of the investigation, when the CFTC was unaware of the ongoing conduct.The Commodities Futures Trading Commission (CFTC) recently awarded a bounty of $10 million to a whistleblower who offered original information voluntarily. The information led to the opening of an investigation and a subsequent successful enforcement action.

According to the order, the individual provided the information properly via a Form TCR that involved information previously unknown to the CFTC, and in violation of the Commodity Exchange Act (CEA.) The whistleblower was under no obligation to provide this information, and provided it at the outset of the investigation, when the CFTC was unaware of the ongoing conduct. Continue reading

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The Commodity Futures Trading Commission (CFTC) has awarded a $625,000 bounty to four whistleblowers who provided information and assistance in an investigation. A total of nine claimants submitted award applications for this enforcement action. Of that number, only four received awards. Claimants 2, 3, 4, and 6 received bounties from the civil monetary penalties levied against the two defendants involved in the enforcement action. Claimant 4 offered the highest level of assistance and cooperation and received the largest portion of the bounty. All four offered substantial assistance that included providing names and other information which supported the Commission's action against the defendants. The Claims Review Staff (CRS) decided to deny award applications of claimants 1, 5, 7, 8, and 9. These claimants failed to meet the program’s requirements. Specifically, CRS found that Claimant 1’s wasn't voluntary, because it was provided after they received multiple requests including a subpoena from CFTC staff. After receiving the preliminary determination, Claimant 1 requested the records supporting that determination. CFTC Whistleblower staff provided the material shortly thereafter. Claimant 1 then submitted a letter contesting the preliminary determination. Because this claimant could not offer any new information to support their position, and nothing in the record indicated the voluntary submission of information, the request was again denied. This claimant provided the information only after multiple requests from CFTC. Therefore, the claimant was not eligible to receive an award in this case.The Commodity Futures Trading Commission (CFTC) has awarded a $625,000 bounty to four whistleblowers who provided information and assistance in an investigation.

A total of nine claimants submitted award applications for this enforcement action. Of that number, only four received awards. Claimants 2, 3, 4, and 6 received bounties from the civil monetary penalties levied against the two defendants involved in the enforcement action. Claimant 4 offered the highest level of assistance and cooperation and received the largest portion of the bounty. All four offered substantial assistance that included providing names and other information which supported the Commission’s action against the defendants. Continue reading

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The SEC has awarded $3M to three different whistleblowers for assisting with three distinct covered actions in three separate orders. 1. In the first order, the Claims Review Staff (CRS) awarded a bounty of $1.5 million to an individual who provided original information and voluntarily gave assistance to SEC staff that led to a successful covered action. 2. In the second order, CRS awarded a $1 million bounty to an individual who also voluntarily offered original information that led the SEC to a successful covered enforcement action. In this case, the whistleblower also assisted SEC staff, including multiple interviews. 3. The third order saw a bounty of $400,000 to a whistleblower who first reported their concerns internally, leading to a ceasing of the wrongful activity. The individual subsequently reported the information to the SEC, leading to the opening of an investigation. Over the course of the investigation, the whistleblower met with SEC Enforcement staff, offering additional information and continued assistance. Ultimately, the charges in the covered enforcement action would “bear a close nexus” to the whistleblower’s stated allegations.The SEC has awarded $3M to three different whistleblowers for assisting with three distinct covered actions in three separate orders.

1. In the first order, the Claims Review Staff (CRS) awarded a bounty of $1.5 million to an individual who provided original information and voluntarily gave assistance to SEC staff that led to a successful covered action. Continue reading

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The SEC has again given an award to a whistleblower. This time it totals $3.5 million, and comes after multiple instances of support from the individual. The whistleblower’s contribution prompted SEC staff to investigate more possible securities violations. This made the investigation easier for the SEC staff, which saved them time and resources. The additional information also helped with the whistleblower’s discussion of settlement. Not one, but two SEC enforcement actions were successful as a result of the whistleblower’s assistance and cooperation. The second enforcement action came from the same “nucleus of operative facts”  as the first action.The SEC has again given an award to a whistleblower. This time it totals $3.5 million, and comes after multiple instances of support from the individual.

The whistleblower’s contribution prompted SEC staff to investigate more possible securities violations. This made the investigation easier for the SEC staff, which saved them time and resources. Continue reading

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