Regulatory whistleblowers don’t get rewarded much anymore, but the practice isn’t completely dead. The U.S. Commodity Futures Trading Commission (CFTC) has just awarded US$1.8 million in its second bounty of the year.
The reward went to a pair of tipsters that provided the regulator with information that “significantly contributed to the successful resolution of enforcement cases involving defrauded investors,” it said.
According to the CFTC’s order, six claimants sought awards in the case. The regulator’s staff ruled that two of those claims were valid, and it denied the other four.
Two of the rejected claimants appealed, but they were again turned down, on the basis that the information they provided to the CFTC didn’t significantly contribute to the investigation, or to the enforcement action’s resolution.
For the two successful claimants, the CFTC said that they provided “crucial evidence” that contributed to the success of the case — including “ongoing, extensive and timely cooperation” with the regulator’s enforcement staff.
Additionally, the CFTC’s staff concluded that the award being handed out in this case “will incentivize future whistleblowers” to contact regulators with information about suspected misconduct.
“We are grateful to the whistleblowers for coming forward,” said Cynthia Lie, acting director of the CFTC’s whistleblower office, in a release.
“Like many before them, these whistleblowers showed courage and commitment to the public interest. They...
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