A former employee has been awarded more than $10 million for providing key information that led to a successful enforcement action by the federal Commodity Futures Trading Commission (CFTC). This is the largest award ever granted by the CFTC for violations of the Commodity Exchange Act (CEA). It is the second largest whistleblower award overall, behind a $30 million award granted to a whistleblower by the federal Securities and Exchange Commission (SEC) in 2014.

Financial enforcement agencies established whistleblower incentive programs after the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act). Section 748 of the Dodd Frank Act empowers the SEC and CFTC to set up these programs to encourage and reward employees of financial firms to report wrongdoing and assist in investigations and enforcement actions.

CFTC Whistleblower programs typically award 10% to 30% of any sanctions collected from firms that violate financial laws. Whistleblowers are awarded compensation based on a variety of factors:

• Significance of the information to the enforcement action.
• Level of cooperation provided to the investigators bringing the action.
• Will the whistleblower award deter firms from CEA violations?
• Does the whistleblower award protect customers, enhance the overall efficiency of the enforcement action process, and further the goals of the CEA?
• Whether the award will have a negative impact on future actions.

The CFTC program pays whistleblowers who provide information that leads to successful enforcement actions resulting in monetary sanctions that exceed $1 million or more.   Whistleblower awards are paid exclusively from congressionally established funds made up of penalties.

These incentives encourage whistleblowers at financial firms to step forward, and enforcement agencies are required by law to keep the identity of the whistleblowers strictly confidential.

The Dodd-Frank Act also prevents employers from retaliating against whistleblowers for reporting violations. Employers may not do any of the following to a whistleblower:

• Fire, demote, or suspend them from their position.
• Threaten, harass, or discriminate against them, whether directly or indirectly.

Similar to the confidentiality requirements of whistleblower programs, these anti-retaliation measures are designed to encourage whistleblower cooperation.

If you or someone you know has a crisis or concern about workplace discrimination or retaliation, whether related to whistleblowing or not, an experienced employment law attorney for workers can be essential to the cause. Our office regularly represents “whistleblowing” employees or former employees. Contact the Central Jersey Law Offices of Hanan M. Isaacs, P.C., to schedule your near-term and reduced fee initial consultation. Call 609-683-7400 or contact us online today. You will be glad you did.