So far 2014 has proven to be a lucrative year for whistleblowers assisting federal agencies in bringing suits against “violators”.
In following up on last year’s impressive $14 million dollar whistleblower reward, the U.S. Securities and Exchange Commission (SEC) has just announced an award of $875,000 to two whistleblowers “who aided” the Agency on its investigation. In addition, the Commodity Futures Trading Commission (CFTC) announced just last month that it had made its first award to a whistleblower – the individual will “receive approximately $240,000 for providing valuable information about violations of the Commodity Exchange Act.”
The SEC announcement indicated that the award of more than $875,000 will be split evenly between two individuals who provided tips and assistance to assist the agency in bringing an enforcement action. According to Sean McKessy, Chief of the SEC’s Office of the Whistleblower, “these whistleblowers provided original information and assistance that enabled us to investigate and bring a successful enforcement action in a complex area of the securities market.” “Whistleblowers who report their concerns to the SEC perform a great service to investors and help us combat fraud.”
Acting Director of the CFTC’s Division of Enforcement Gretchen Lowe said, “here, the whistleblower provided specific, timely and credible information that led to the Commission bringing important enforcement actions. The CFTC’s Whistleblower Program is attracting high-quality tips and cooperation we might not otherwise receive and is already having an impact on the Commission’s enforcement mission.” Whistleblowers can collect from 10 to 30 percent of any monies collected by the Commission.
This continuing trend over the past few years will only carry on as disgruntled employees become increasingly aware of the potential financial benefits of blowing the whistle.