The CFTC announced last week its first award under the whistleblower award program initiated pursuant to the Dodd-Frank Act. Under the program, eligible whistleblowers are entitled to a financial award where original information provided leads to a successful enforcement action and the collection of at least $1 million. Whistleblowers who file successful claims are also entitled to job security and confidentiality.

Though the identity of the awardee remains undisclosed, the CFTC Whistleblower Award Determination Panel deemed the information “sufficiently specific, credible, and timely to cause the Commission to open an investigation.” The unnamed whistleblower received an award of $240,000 for providing the information. Pursuant to CFTC Regulation 165.8, awards granted under the whistleblower program amount to between 10 and 30 percent of the total amount of sanctions collected from the enforcement action.

Prior to finalization of the relevant regulations, the CFTC received over 600 letters arguing that the proposed regulation provided insufficient protection to whistleblowers and instead sought to protect financial entities by limiting the pool of potential whistleblowers. Prior to the issuance of the award last week, the CFTC denied 25 whistleblower claims.