SEC Whistleblower Office's $500,000 Award natlawreview.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from natlawreview.com Daily Mail and Mail on Sunday newspapers.
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Tuesday, March 2, 2021
Because of the unanticipated success of the Commodity Exchange Act’s (“CEA”) whistleblower law, the Commodity Futures Trading Commission (“CFTC” or “Commission”) faces a unique problem. The Commission cannot compensate whistleblowers, as required under law, because of a cap on the amount of money that can be deposited into a special fund used to pay rewards and other essential expenses necessary to operate the CFTC’s whistleblower office. The CTFC’s Consumer Protection Fund (“Fund”) is the exclusive Fund used to compensate whistleblowers who provide original information that results in a successful prosecution. All of the money deposited into the Fund comes directly from sanctions paid by fraudsters. However, because of the limit placed on the amount allowed to be deposited into the account, whistleblowers who disclose large frauds currently cannot be properly paid.
Senators Introduce Bill to Rescue CFTC Whistleblower Program Friday, February 26, 2021
Yesterday, Sens. Chuck Grassley (R-Iowa), Maggie Hassan (D-N.H.), Joni Ernst (R-Iowa), and Tammy Baldwin (D-Wis.) introduced the CFTC Fund Management Act. The purpose of this bipartisan legislation is to increase the whistleblower reward fund used to pay rewards to those that report commodities fraud. The fund is in danger of depletion due to the increasing success of the program. The bill would allow the commission to set aside more money from fines collected to pay whistleblower awards.
The Commodities Futures Trading Commission (CFTC) relies on whistleblower to uncover fraud and other illegal activities. Its Customer Protection Fund, established by Congress in 2010, hold funds that are used to reward whistleblowers for their disclosures. However, it is also used to pay for operating expenses and educational initiatives associated with the CFTC whistleblower office.
SEC Announces Two Whistleblower Awards Totaling Over $1.7 Million natlawreview.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from natlawreview.com Daily Mail and Mail on Sunday newspapers.