CFTC has collected more than US$1 billion in sanctions via tipsters

Whistleblower tips to the U.S. Commodity Futures Trading Commission (CFTC) have now produced more than US$1-billion-worth of enforcement action.

The U.S. derivatives regulator announced its latest whistleblower award of approximately US$3 million to a tipster who provided the agency with a “timely tip” that caused the regulator to open an investigation, which ultimately led to a successful enforcement action.

With this latest payout, the CFTC has now paid US$123 million in whistleblower awards, which have generated enforcement activity that has produced more than US$1 billion in monetary sanctions.

“This milestone illustrates that the CFTC’s whistleblower program has had a tremendous impact on increasing our enforcement efforts in its short history,” said Vincent McGonagle, acting director of enforcement at the CFTC.

“In many of our actions, whistleblowers’ assistance has been critical in revealing wrongdoing, and their tips ultimately conserve the CFTC’s time and resources,” McGonagle added.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.