Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Practice Guide
Navigating the CFTC Whistleblower Program
and the Rules and Procedures that Can Lead to Financial Rewards
for Reporting Commodity Futures Trading Violations
January 2020
THE CFTC WHISTLEBLOWER PRACTICE GUIDE
TABLE OF CONTENTS
RESOURCES............................................................................................................................................................. 10
ENDNOTES............................................................................................................................................................... 11
© Copyright 2020 i
THE CFTC WHISTLEBLOWER PRACTICE GUIDE
© Copyright 2020 1
THE CFTC WHISTLEBLOWER PRACTICE GUIDE
© Copyright 2020 2
THE CFTC WHISTLEBLOWER PRACTICE GUIDE
4. Exclusions from Independent Knowledge These exceptions aim to encourage internal personnel to
and Analysis reveal information that could prevent some greater injury
In order to promote the use of internal compliance systems to the company, its stockholders, or an investigation of the
and discourage certain types of reporting, the Commission wrongdoing. When evaluating a case that falls into one of these
categorically excludes certain types of information from exceptions, attorneys should focus on whether the whistleblower
eligibility. See 17 C.F.R. § 165.2(g). The exclusions can be can establish that there is a reasonable basis for his or her belief
divided into three general categories. that some injury will occur without the disclosure.
One set of exclusions disqualifies individuals that obtain
information either illegally or through sources that are B. Rules Designed to Incentivize Internal
generally available to the public. The Commission prohibits a Reporting
whistleblower from receiving an award if he or she obtains the The CFTC does not require whistleblowers to report CEA
information by means or in a manner that violates an applicable violations internally before collecting an award. The decision
federal or state criminal law. The CFTC will also not issue an not to require internal reporting caused controversy during
award to a whistleblower who submits information from sources the CFTC’s rulemaking process. Many commenters believed
that are generally available to the public such as corporate filings that without an internal reporting requirement, the Program
and the media, including the Internet. would incentivize whistleblowers to bypass internal reporting
Another set of exclusions is aimed at encouraging corporate systems, thereby harming corporate governance efforts and the
officials and other whistleblowers to consult with an attorney,
by disqualifying attorneys from whistleblower awards in many
situations. The regulations prohibit an attorney from using
attorney-client privileged information and/or information gained
Whistleblowers may receive
in connection with a legal representation to seek an award
under the Program, unless the disclosure of such information is
an award from the CFTC for
otherwise permitted under state or federal attorney conduct rules. information that leads to a
A third set of exclusions was created to promote corporate
governance and internal compliance. Whistleblowers are successful enforcement action
ineligible for an award if they obtained information through
their role as an officer, director, trustee, or party of an entity and with a monetary recovery
the information came from an investigation of the entity into
possible violations of law. Whistleblowers are also ineligible if totaling more than $1 million.
information about a CEA violation is obtained through their role
as an internal audit employee or compliance professional.
Consistent with its goal of supporting internal measures overall corporate interests of even the most well intentioned
developed by entities to deal with CEA violations, the CFTC entities. In its proposed rules the Commission stated that, “[it
created three exceptions to the third category of excluded does] recognize that internal compliance and reporting systems
information: ought to contribute to the goal of detecting, deterring and
• The whistleblower has a reasonable basis to believe that preventing misconduct, including CEA violations, and does not
disclosure is necessary to prevent substantial injury to the want to discourage employees from using such systems when
entity or investors. they are in place.”19
• The whistleblower has a reasonable basis to believe that To address such concerns, the CFTC included various
the entity is engaging in conduct that will impede an incentives for individuals to utilize internal corporate compliance
investigation of misconduct. systems before reporting to the CFTC. For example, when
• At least 120 days have passed since the whistleblower the CFTC evaluates what percentage of a sanction to award a
has provided the information to the entity’s relevant whistleblower, the Commission considers a whistleblower’s
internal authority or since the whistleblower received report of information to an employer’s internal whistleblower,
the information under circumstances indicating that the compliance, or legal system as a factor that potentially can
entity’s relevant internal authority was already aware of increase the amount of an award. Conversely, it also considers
the information. a whistleblower’s interference with such internal systems as a
factor that can potentially decrease the amount of an award. See
17 C.F.R. § 165.2(g)(7)(i-iii). 17 C.F.R. § 165.9(b)(4), (c)(3).
© Copyright 2020 3
THE CFTC WHISTLEBLOWER PRACTICE GUIDE
Additionally, a whistleblower may still be eligible for an misappropriation of confidential information. The CFTC filed
award for reporting original information internally if his or more actions in parallel with criminal authorities than in any
her employer later reports the information to the Commission prior year.22
and it leads to a successful enforcement action. In this
situation, all of the information provided by the employer to D. Monetary Sanctions Totaling More Than
the Commission will be attributed to the whistleblower – and $1 Million
the whistleblower may be eligible for a greater award for first The Commission determines whether an action meets the
reporting it internally to his or her employer. See 17 C.F.R. §§ $1,000,000 threshold by calculating any penalties, disgorgement,
165.2(i)(3), 165.9(b)(4). restitution and interest ordered to be paid in a judicial or
administrative action, or a related action. See 7 U.S.C. § 26(a)(3)
C. Information that Leads to Successful (A); 17 C.F.R. § 165.2(j)(1). The Commission also recognizes
Enforcement settlement as a successful resolution which may lead to recovery
The Commission will only authorize payment of an award of an award. See 7 U.S.C. § 26(6). Additionally, it includes
when a whistleblower provides information that leads to a any money deposited in a disgorgement fund pursuant to the
successful enforcement of a covered administrative or judicial Sarbanes Oxley Act of 2002 (“SOX”) as a result of a CFTC
action, or a related action, that leads to monetary sanctions administrative or judicial action or its settlement. See 7 U.S.C. §
totaling more than $1,000,000. 7 U.S.C. § 26(a)(1). This reflects 26(a)(3)(A); 17 C.F.R. § 165.2(j)(1).
the Commission’s expectation that the award-worthy information During the proposed rulemaking process, the CFTC issued
is high-quality, reliable, specific, and has a meaningful nexus a proposed rule indicating that awards would only be available
to the Commission’s ability to successfully complete its when the Commission successfully brings a single judicial or
investigation, and to either obtain a settlement or prevail in a administrative action amounting to more than $1,000,000.23
litigated proceeding.20 The whistleblower tip will be considered However, in response to negative comments it received, the
to lead to a successful enforcement action if: Commission determined in its final rule that it will aggregate
• The whistleblower gives the CFTC original information two or more smaller actions that arise from the same nucleus of
that is sufficiently specific, credible, and timely to cause operative facts, in order to make whistleblower awards available
the Commission staff to engage in an investigation and in more cases.24
the Commission subsequently brings a successful judicial The Commission will also issue awards based on “related
or administrative action based in whole or in part on the actions.” A related action is a judicial or administrative action
information, 17 C.F.R. § 165.2(i)(1); or brought by a specified entity – such as the Department of Justice,
• The whistleblower provides original information about a federal or state agency, or a self-regulatory organization – and
conduct that was already under investigation by the is based on the same original information voluntarily submitted
Commission, or another specified regulatory body,21 and to the Commission and led to a successful resolution of the
the submission significantly contributes to the success of Commission action. See 17 C.F.R. § 165.11.
the action, 17 C.F.R. § 165.2(i)(2).
As mentioned above, the CFTC promotes internal E. CFTC Procedures for Submitting a Tip
compliance by making individuals eligible for an award even Whistleblowers must submit information through a two-
if the information was not brought to the Commission directly step process. First, the whistleblower must submit his or her
by the whistleblower. To that end, when a whistleblower information to the Commission by: (1) completing and submitting
originally reports the information to an entity through its a Form TCR (“Tip, Complaint, or Referral”) electronically on
internal compliance procedures, and the entity later provides the CFTC’s website or by faxing or mailing a hard copy of the
the information to the Commission, the whistleblower is Form TCR to the Commission; and (2) the whistleblower must
given credit for the submission. See 17 C.F.R. § 165.2(i)(3). declare under penalty of perjury at the time he or she submits the
In this situation, the whistleblower must submit the same information that the information is true and correct to the best of
information to the Commission within 180 days of providing their knowledge and belief. 17 C.F.R. § 165.3. As part of a quality
the information to the entity. Id. submission, the whistleblower should provide detailed allegations,
The CFTC was active in FY2019, filing 69 enforcement describe the source of the information, and include supporting
actions and issuing over $1.3 billion in total monetary sanctions, materials along with the information.
the fourth highest total in CFTC history. The CFTC took Due to the risks of retaliation that individuals may encounter
enforcement actions against disruptive trade practices such in the workplace and the risk of reputational harm that would
as commodities fraud, manipulative behavior, spoofing, and interfere with future job prospects, whistleblowers may want to
© Copyright 2020 4
THE CFTC WHISTLEBLOWER PRACTICE GUIDE
submit their information to the CFTC anonymously. The CFTC attorney must produce to the Commission the whistleblower’s
provides whistleblowers with the option to submit the Form signed original WB–APP and the whistleblower’s identity
TCR anonymously and to further identify for non-disclosure any must be verified in a form and manner that is acceptable to the
documents or information that could reasonably be expected to Commission prior to the payment of any award. 17 C.F.R. §
reveal the whistleblower’s identity. As further discussed below, 165.7(c)(2).
to collect an award and remain anonymous, the whistleblower If the CFTC’s Whistleblower Office determines that a
must submit their request to the CFTC through an attorney. whistleblower’s Form WB-APP does not relate to a Notice
of Covered Action, a final judgment in a related action, or a
F. Claiming a Whistleblower Award previously filed Form TCR, the Whistleblower Office will
The Commission will publish on its website (www.cftc. inform the claimant in writing of the deficiency. The claimant
gov) a Notice of Covered Action (“Notice”) when a judicial must respond within thirty days to correct the deficiency, or
or administrative action results in monetary sanctions totaling else lose the right to appeal the Whistleblower Office’s adverse
more than $1,000,000. The inclusion of the Notice on the determination. If the claimant fails to respond and correct the
CFTC’s website means that an order was entered with monetary deficiency, the Whistleblower Office will issue a Proposed
sanctions exceeding $1,000,000, although it does not necessarily Final Disposition and notify the CFTC’s Claims Review Staff.
mean that the recovery involved a whistleblower tip. The CFTC If a member of the Claims Review Staff requests to review
does not contact any potential claimants directly regarding the the Form WB-APP, the Claims Review Staff will review
the whistleblower’s record (Form TCR, Form WB-APP, the
complaint, and other documents) and either remand the matter
Whistleblowers can to the Whistleblower Office or issue a Final Order of the
Commission. If no member of the Claims Review Staff requests
submit information to the review, the Proposed Final Disposition will become the Final
Order of the Commission. 17 C.F.R. § 165.7(e).
CFTC anonymously. If the Whistleblower Office determines that the Form
WB-APP does relate to a Notice of Covered Action or a final
judgment in a related action, the Form WB-APP will be sent to
success of an enforcement action that could entitle them to an the Claims Review Staff for review. The Whistleblower Office
award. Potential claimants must be vigilant about monitoring the may require that the claimant provide additional information
website for a Notice related to their submission, and must submit relating to his or her eligibility for an award. In the event a
their claims within 90 days of the posting. A whistleblower Form WB-APP relates to a final judgment in a related action,
seeking an award based on a related action must submit a claim the Whistleblower Office also may require the claimant to
within 90 days of the final judgment in the related action; demonstrate that the claimant voluntarily provided the original
however, if the final judgment in the related action is issued information that led to the successful enforcement of the related
before the Notice, the claimant may simultaneously submit a action; the Whistleblower Office may also seek assistance
claim for both the related action and the covered action within and confirmation from the relevant agency in making this
90 days of the Notice. See 17 C.F.R. § 165.7(b). determination. 17 C.F.R. § 165.7(f).
To file a claim for a whistleblower award, the whistleblower Upon completion of the review, the Claims Review Staff will
must file and sign a Form WB–APP (Application for Award issue a Preliminary Determination of whether the claim should
for Original Information Provided Pursuant to Section 23 of be granted and, if so, the proposed award percentage. A copy of
the Commodity Exchange Act) by mailing or faxing it to the the Preliminary Determination will be provided to the claimant.
Commission or submitting it through the Commission’s website The claimant has thirty days to request that the Whistleblower
within 90 days. Office make available for review the materials relied upon by the
To collect an award anonymously, the whistleblower must Claims Review Staff in making its Preliminary Determination.
collect his or her award though an attorney. The whistleblower If the claimant decides to contest the Preliminary Determination,
must provide a completed, signed Form WB–APP to his or he or she must submit a written response and supporting
her counsel, who then submits to the Commission a copy of materials setting forth the grounds for the objection to either the
the Form WB–APP that does not disclose the whistleblower’s denial of an award or the proposed amount of an award. The
identity and is signed solely by the attorney. The attorney must claimant must submit the written response within 60 days from
retain the signed original of the whistleblower’s Form WB–APP the date of the Preliminary Determination or, if the claimant
in their records. Upon request of the Commission staff, the requested to review the materials used to make the Preliminary
© Copyright 2020 5
THE CFTC WHISTLEBLOWER PRACTICE GUIDE
Determination, within 60 days of the Whistleblower Office representative, programmatic interests of the Commission
making the materials available for the claimant’s review. The to deter violations of the CEA by issuing an award, and the
claimant may also request a meeting with the Whistleblower whistleblower’s participation in internal compliance systems.
office within those 60 days, although the Whistleblower Office The Commission also weighs other factors to determine whether
has sole discretion to grant or deny any meeting request. 17 to decrease the whistleblower’s award. These factors include
C.F.R. § 165.7(g). the level of the whistleblower’s culpability in misconduct
If the claimant does not submit a timely written response associated with the reported CEA violation, whether there was
to the Preliminary Determination, then the Preliminary an unreasonable reporting delay, and whether the whistleblower
Determination will become the Final Order of the Commission interfered with internal compliance and reporting systems.
or, if the Preliminary Determination recommended a
whistleblower award, the Preliminary Determination will
become a Proposed Final Determination. 17 C.F.R. § 165.7(h).
If the claimant does submit a timely written response, then the
Individuals are protected from
Claims Review Staff will review the claimant’s response and retaliation whether or not they
make a Proposed Final Determination. 17 C.F.R. § 165.7(i).
The Whistleblower Office will notify the Commission of qualify for an award under the
each Proposed Final Determination. Within 30 days of such
notification, any Commissioner may request that the Proposed CFTC program.
Final Determination be reviewed by the Commission. If no
Commissioner makes such a request, then the Proposed Final
Determination will become the Final Order of the Commission.
If a Commissioner does request a review, the Commission will PROTECTIONS AGAINST RETALIATION
review the record and issue its Final Order. 17 C.F.R. § 165.7(j).
The CFTC Whistleblower Program offers multiple layers
The Office of the Secretariat will provide the claimant with a
of protection to guard against retaliation. As a preliminary
copy of the Final Order. 17 C.F.R. § 165.7(l). The claimant then
safeguard, the CFTC provides for confidential and anonymous
has 30 days to appeal the Final Order, “including whether, to
filing. It treats the identity of all whistleblowers and the
whom, or in what amount to make whistleblower awards,” to the
information it obtains from a whistleblower as confidential
appropriate United States court of appeals, which will review
and also provides whistleblowers with the option to report
the Final Order in accordance with the Administrative Procedure
information anonymously. Next, individuals may file retaliation
Act. 7 U.S.C. § 26(f); 17 C.F.R. § 165.13(a).
claims in federal district court under section 23(h)(1) of the
Commodity Exchange Act. 17 C.F.R. § 165 App’x A(b)(1).
G. Determining the Amount of an Award
Employees of the federal government, however, may only
The Commission has authority to award a whistleblower
bring an action for retaliation in violation of the CEA under 5
anywhere between 10% to 30% of what has been recovered
U.S.C § 1221, which provides for corrective action from the
by the Commission. 7 U.S.C. § 26(b)(1); 17 C.F.R. § 165.8.
Merit Systems Protection Board in certain reprisal cases. Id.;
In a case where the Commission issues an award to multiple
7 U.S.C. § 26(h)(1)(B)(i). In addition, in May 2017 the CFTC
whistleblowers in the same action, the Commission cannot
announced amendments to its rules to authorize the CFTC to
award the whistleblowers a total award of less than 10% or more
bring enforcement actions against an employer for retaliation
than a total of 30% of the sanctions imposed. For example, one
against a whistleblower.26 The new rule, codified at 17 C.F.R. §
whistleblower could receive an award of 25% of the collected
165.20(b), went into effect on July 31, 2017. To date the CFTC
sanctions, and another could receive an award of 5%, but they
has not announced any such enforcement actions.
could not receive an award that would collectively total more
than 30% of the recovery.
To determine the amount of an award, the Commission A. Confidential and Anonymous Filing
Dodd-Frank requires the CFTC to treat submissions
reviews the whistleblower’s record (Form TCR, Form
as confidential and not to disclose any information that
WB-APP, the complaint, and other documents) and takes a
could “reasonably be expected to reveal the identity of a
number of factors into consideration.25 Factors that increase
whistleblower.” 7 U.S.C. § 26(h)(2). There are, however,
an award include the significance of the information to the
limited circumstances in which the Commission is authorized
ultimate success of the Commission’s action, the degree of
to disclose information related to a submission. For example,
assistance provided by the whistleblower and his or her legal
© Copyright 2020 6
THE CFTC WHISTLEBLOWER PRACTICE GUIDE
the Commission must disclose a whistleblower’s identity to a is also protected for assisting in any investigation or judicial or
defendant in a public proceeding filed by the Commission or a administrative action of the Commission based upon or related
public proceeding filed by an authority to which the Commission to such information. Employers may not discharge, demote,
provides the information. Id. The Commission may also suspend, threaten, harass or discriminate against an individual
reveal the whistleblower’s identity to certain entities where for engaging in this conduct. Individuals must bring a cause of
the Commission determines that it is necessary to accomplish action for retaliation within two years of the date of the alleged
the purposes of the Commodity Exchange Act and to protect retaliation. They may be entitled to reinstatement, back pay
customers.27 Lastly, the Commission may make disclosures in with interest, compensation for any special damages sustained
accordance with the Privacy Act of 1974. 7 U.S.C. § 26 (h)(2); as a result of the discharge or discrimination including litigation
17 C.F.R. § 165.4(a). costs, expert witness fees, and reasonable attorney’s fees. See 7
U.S.C. § 26(h)(B); 17 C.F.R. § 165 App’x A(b)(1).
Employers cannot require their employees to waive the
CFTC whistleblowers should anti-retaliation protections, or any rights or remedies associated
with the CFTC Whistleblower Program, as a condition of
focus on violations that fit employment. In addition, no pre-dispute arbitration agreement
is valid or enforceable with respect to disputes arising under
squarely within the CFTC’s the Program, and no confidentiality agreement can impede a
whistleblower from communicating directly with the CFTC. 7
law-enforcement priorities. U.S.C. § 26(n); 17 C.F.R. § 165.19.
© Copyright 2020 7
THE CFTC WHISTLEBLOWER PRACTICE GUIDE
The following is a partial list of “do’s and don’ts” for • Remember that your client, through you, may file a tip
practitioners who seek to help their clients make a compelling anonymously as long as you follow the procedures set
case for enforcement action by the CFTC. These considerations, forth in the rules for anonymous submissions. This can
which should also be helpful to whistleblowers who participate certainly help prevent retaliation against your client,
in the program without counsel, are based on the final rules especially if he or she is determined not to report
discussed above, the CFTC’s handling of whistleblower tips to internally for fear of retaliation.
date, and the authors’ first-hand experiences representing clients • Use the CFTC-supplied forms and carefully follow the rules
before various whistleblower offices: that apply to them, as a whistleblower is eligible for a reward
• Determine whether the client has original information only if he or she follows the prescribed procedures.30 The
about violations of the Commodity Exchange Act. importance of following the rules cannot be overemphasized.
• Assess the seriousness of the alleged violations by • The CFTC is receiving an increasing number of submissions
reviewing past CFTC’s regulatory and enforcement each year and it is important to make your client’s
actions, which are available on the CFTC’s website. submission as compelling as possible. If the lawyers and
• Where needed, assess the potential tip with the help of an accountants who review tips in the CFTC Whistleblower
expert in the appropriate specialty. Office cannot understand your client’s submission on a
• Determine whether and to what extent your client’s first read, it will not likely end up at the top of the stack.
information might advance the CFTC’s current Present your facts and analysis clearly and include with the
enforcement agenda. The CFTC’s website contains a Form TCR any relevant documents your client can provide.
great deal of information about Commission priorities, Although it is possible to supplement your submission later,
including enforcement actions, press releases, and task- you do not want to lose the opportunity for the CFTC staff to
force reports. Speeches by CFTC commissioners and see the basis for a successful enforcement action in the first
high-level officials can also shed light on the types of thirty minutes of reviewing your tip, and you get only one
information that may be of greatest interest to the CFTC. chance to make that happen.
• Make sure that your client will be providing information • Include any “independent analysis” your client can apply
“voluntarily” – i.e., prior to receiving a request for the to other facts, even publicly available ones, in a way that
same information from the CFTC or another authority, will assist CFTC lawyers in an investigation. Remember
entity, association or SRO. that CFTC tips can be based on publicly available
• Prepare the client’s submission to the CFTC with an information – as long as the analysis reveals additional
emphasis on facts about which the client has “independent information that is not generally available to the public.
knowledge” as defined in the final rules above. Review CFTC investigators will also accept and appreciate your
the client’s position, job duties, and how he or she came analysis of publicly available information if the analysis
into possession of the information to determine whether reveals further information that is not publicly available or
they fall within one of the groups of individuals who provides insights that are not generally known.
are presumptively excluded from the program for lack • Do not include attorney-client privileged communications
of “independent knowledge.” This would generally in your client’s submission to the CFTC. The Commission
include attorneys, compliance personnel, and officers or will not consider the information, and its receipt of such
directors who received the information in connection with communications will in itself delay or even discourage the
corporate-governance responsibilities. CFTC’s consideration of the submission as a whole.
• If the client falls into one of the excluded categories, see if • Make sure to consult the website of the CFTC Office of
the client may nevertheless be exempt from the exclusion the Whistleblower,31 which has useful information about
because he or she reported the concerns internally and has how to submit a tip and claim an award. That office’s staff
waited 120 days without action, or has reason to believe also answers telephone inquiries about the program and
disclosure is necessary to prevent substantial injury to the how it works. In addition, the CFTC website (www.cftc.
entity or investors. gov) provides comprehensive, searchable information
• Give careful consideration to whether to advise the client about futures trading laws, CFTC yearly reports, and past
to report internally, keeping in mind that doing so might and ongoing Commission enforcement actions that can be
subject the client to retaliation but might also entitle the very helpful in preparing your tip.
client to a larger award.
© Copyright 2020 8
THE CFTC WHISTLEBLOWER PRACTICE GUIDE
Lisa Banks is a partner with Katz, Marshall Katz, Marshall & Banks, LLP’s website at www.kmblegal.
& Banks, LLP, a whistleblower and employment com contains information about how whistleblowers can fight
law firm based in Washington, D.C. She back against unlawful retaliation and also earn financial rewards
specializes in the representation of individuals where available. There are “Know Your Rights” and “Practice
in whistleblower retaliation cases, SEC and Area” articles in the website’s Whistleblower Law section that
CFTC whistleblower tips, and employment explain both the law and practicalities of whistleblowing as
discrimination and sexual harassment they play out in a wide range of industries and professions.
claims. Joseph Abboud, an associate at the firm, assisted in the Whistleblower topics include Corporate and Accounting
preparation of this guide. Fraud, the SEC Whistleblower Program, Qui Tam Lawsuits
under the False Claims Act, the IRS Whistleblower Program,
Michael A. Filoromo is a partner with Katz, Compliance Officer Whistleblowers, Consumer Product Safety
Marshall & Banks, LLP. He regularly represents Whistleblowers, and Whistleblowers in the Consumer Finance,
clients in claims brought under the Sarbanes- Pharmaceutical, Food Safety, and Nuclear industries, to name
Oxley corporate whistleblower protections, the just a few. See http://www.kmblegal.com/practice-areas/
False Claims Act anti-retaliation provisions, whistleblower-law/.
and the anti-discrimination and retaliation The Katz, Marshall & Banks website also hosts informative
protections of Title VII of the Civil Rights Act blogs that can help keep whistleblowers and other conscientious
and corresponding state laws. employees up to date on new developments in whistleblower law
and related news. (http://www.kmblegal.com/whistleblower-law-
blog/).
© Copyright 2020 9
THE CFTC WHISTLEBLOWER PRACTICE GUIDE
RESOURCES
Katz, Marshall & Banks, LLP’s website contains information Consumer Finance Whistleblower: http://www.kmblegal.
about how whistleblowers can fight back against unlawful com/practice-areas/whistleblower-law/consumer-finance-
retaliation and also earn financial rewards where available. whistleblower
Consumer Product & Food Safety Whistleblowers: http://www.
Government Resources kmblegal.com/practice-areas/whistleblower-law/consumer-
Commodity Futures Trading Commission (CFTC): http://www. product-safety-whistleblowers
cftc.gov/index.htm
Corporate & Accounting Fraud: http://www.kmblegal.com/
Commodities Exchange Act (CEA): http://www.cftc.gov/ practice-areas/whistleblower-law/corporate-accounting-fraud
lawregulation/commodityexchangeact/index.htm
Dodd-Frank Act Whistleblower Incentives: http://www.
CFTC Consumer Protection Resources: http://www.cftc.gov/ kmblegal.com/practice-areas/whistleblower-law/dodd-frank-act-
ConsumerProtection/Resources/index.htm whistleblower-incentives
Consumer Financial Protection Bureau: https://www. Environmental Whistleblower: http://www.kmblegal.com/
consumerfinance.gov/ practice-areas/whistleblower-law/environmental-whistleblower
Federal Trade Commission: https://www.ftc.gov/ SEC Whistleblower Program: http://www.kmblegal.com/
U.S. Securities and Exchange Commission Investment practice-areas/sec-whistleblower-law
Professional Database: https://www.investor.gov/ Qui Tam Lawsuits under the False Claims Act: http://www.
Municipal Securities Rulemaking Board Education Center: kmblegal.com/practice-areas/whistleblower-law/qui-tam-
http://www.msrb.org/EducationCenter.aspx whistleblower-incentives
Financial Literacy Education Commission: https://www. The Nuclear Industry Whistleblowers: http://www.kmblegal.
mymoney.gov/Pages/default.aspx com/practice-areas/whistleblower-law/nuclear-environmental
National Futures Association: https://www.nfa.futures.org/NFA- Pharmaceutical Whistleblower: http://www.kmblegal.com/
investor-information/index.HTML practice-areas/whistleblower-law/pharmaceutical-whistleblower
Financial Industry Regulatory Authority: http://www.finra.org/ Transportation Whistleblower: http://www.kmblegal.com/
Occupational Safety and Health Administration (OSHA): https:// practice-areas/whistleblower-law/transportation-whistleblower
www.osha.gov/ Sarbanes-Oxley Act: http://www.kmblegal.com/resources/
Department of Labor – Administrative Review Board: https:// sarbanes-oxley
www.dol.gov/arb/welcome.html Financial Industry Whistleblower Information: http://www.
Federal Communications Commission: https://www.fcc.gov/ kmblegal.com/resources/financial-industry-whistleblower
Practice Guides The Katz, Marshall & Banks website also hosts informative
SEC Whistleblower Practice Guide: http://www.kmblegal.com/ blogs that can help keep whistleblowers and other conscientious
resources/sec-whistleblower-practice-guide employees up to date on new developments in whistleblower law
and related news. See http://www.kmblegal.com/whistleblower-
Cybersecurity Whistleblower Protections Guide: http://www. law-blog/.
kmblegal.com/sites/default/files/cybersecurity-whistleblower-
protection-guide.pdf To receive the free Katz, Marshall & Banks monthly e-newsletter
with updates on whistleblower topics, subscribe here: http://
Whistleblower Topics www.kmblegal.com/newsletter-signup.
CFTC Whistleblower Incentives: http://www.kmblegal.com/
practice-areas/whistleblower-law/cftc-whistleblower-incentives
Compliance Officer Whistleblower: http://www.kmblegal.
com/practice-areas/whistleblower-law/compliance-officer-
whistleblower
© Copyright 2020 10
THE CFTC WHISTLEBLOWER PRACTICE GUIDE
ENDNOTES
1
CFTC Annual Report on the Whistleblower Program and Consumer 15
This Guide focuses on the CFTC Whistleblower Program, but
Education Initiatives (Oct. 2012). whistleblowers and their counsel should keep in mind that Dodd-Frank
established a very similar whistleblower program that is administered by
2
CFTC Annual Report on the Whistleblower Program and Consumer the Securities and Exchange Commission (“SEC”). The SEC program
Education Initiatives (Oct. 2013); CFTC Annual Report on the is broader and more active than the CFTC’s program. The SEC began
Whistleblower Program and Consumer Education Initiatives (Oct. accepting submissions under its program on July 22, 2010. By the end
2014); CFTC Annual Report on the Whistleblower Program and of fiscal year 2016, the SEC Office of the Whistleblower had received
Consumer Education Initiatives (Oct. 2015); CFTC Annual Report 18,334 submissions. To date, the SEC has issued awards to 66
on the Whistleblower Program and Consumer Education Initiatives whistleblowers, with payouts totaling approximately $387 million out of
(Nov. 2016); CFTC Annual Report on the Whistleblower Program and the investor protection fund established by Congress. See SEC Press
Consumer Education Initiatives (Oct. 2017); CFTC Annual Report on the Release, SEC Awards More Than $1.8 Million to Whistleblower (Aug. 29,
Whistleblower Program and Consumer Education Initiatives (Oct. 2018); 2019), https://www.sec.gov/news/press-release/2019-165.
CFTC Annual Report on the Whistleblower Program and Consumer
Education Initiatives (Oct. 2019). Reports are available at https://www. 16
Excluded individuals include those who are, or were at the time they
Whistleblower.Gov/reports. submitted information, a member, officer or employee of the Department
of Justice (“DOJ”), a registered entity, a registered futures association, a
3
CFTC Press Release, CFTC Issues First Whistleblower Award (May 20, self-regulatory association (“SRO”), or a law enforcement organization.
2014), http://www.cftc.gov/PressRoom/PressReleases/pr6933-14. The CFTC regulations also make individuals ineligible if they are
members, officers or employees of a foreign regulatory authority or law
CFTC Press Release, CFTC to Issue Whistleblower Award of
4
enforcement organization. 17 C.F.R. § 165.6(a). Also excluded from
Approximately $290,000 (Sept. 29, 2015), http://www.cftc.gov/ the program are individuals who have engaged in criminal conduct or
PressRoom/PressReleases/pr7254-15. deception in connection with their claim. See 7 U.S.C. § 26(c)(2)(B); 7
U.S.C. § 26(m).
CFTC Press Release, CFTC Announces Whistleblower Award of
5
More Than $10 Million (Apr. 4, 2016), http://www.cftc.gov/PressRoom/ See Procedures for submitting original information, 17 C.F.R. § 165.3;
17
6
CFTC Press Release, CFTC Announces Fourth Whistleblower Award CFTC Whistleblower Incentives and Protection, 76 Fed. Reg. 53,
18
(July 26, 2016), http://www.cftc.gov/PressRoom/PressReleases/pr7411-16. 172, 53,175 (Aug. 25, 2011). The distinction between ‘‘independent
knowledge,’’ as knowledge not dependent upon publicly available
CFTC Press Release, CFTC Announces Its Largest Ever Whistleblower
7
sources, and direct, first-hand knowledge, is consistent with the approach
Award of Approximately $30 Million (July 12, 2018), https://www.cftc.gov/ courts have typically taken in interpreting similar terminology in the False
PressRoom/PressReleases/7753-18. Claims Act. See United States ex rel. Fried v. West Independent Sch.
Dist., 527 F.3d 439 (5th Cir. 2008); United States ex rel. Paranich v.
8
CFTC Press Release, CFTC Announces First Whistleblower Award to a Sorgnard, 396 F.3d 326 (3d Cir. 2005).
Foreign Whistleblower (July 16, 2018), https://www.cftc.gov/PressRoom/
PressReleases/7755-18. 19
76 Fed. Reg. at 53,173.
9
CFTC Press Release, CFTC Announces Multiple Whistleblower Awards 20
See 76 Fed. Reg. at 53,172.
Totaling More than $45 Million (August 2, 2018), https://www.cftc.gov/
PressRoom/PressReleases/7767-18. These bodies include Congress, any other authority of the federal
21
Whistleblowers and Enhances the Award Claims Review Process (May 22,
CFTC Press Release, CFTC Announces Approximately $7 Million
14
2017), https://www.cftc.gov/PressRoom/PressReleases/pr7559-17.
Whistleblower Award (Sept. 27, 2019), https://www.cftc.gov/PressRoom/
PressReleases/8022-19.
© Copyright 2020 11
THE CFTC WHISTLEBLOWER PRACTICE GUIDE
http://www.cftc.gov/ConsumerProtection/WhistleblowerProgram/index.
31
htm.
© Copyright 2020 12