What “related actions” might allow a CFTC whistleblower to receive a cash award?

Under the CFTC whistleblower program, “related actions” are judicial or administrative proceedings brought by specifically designated authorities. Those authorities include state and federal criminal prosecutors, other civil regulators, and self-regulatory organizations such as national stock exchanges.

For a whistleblower to obtain a related-action award, there must be both a successful CFTC enforcement action and a successful action brought by a qualifying authority. Eligibility for an award in a CFTC enforcement action is a prerequisite for any award in a related action.

The non-CFTC enforcement action must also be based on the same original information that the whistleblower provided to the CFTC. To recover, a whistleblower must show that the same information that was provided to the CFTC was provided to the other enforcement authority and that the information directly contributed to the other authority’s investigative and litigation efforts, leading to the success of that authority’s enforcement action.

Where those conditions are met, a whistleblower will be entitled to an award from the amounts obtained through the related action.

If another agency has a whistleblower program that could pay an award in connection with a “related action,” then the whistleblower must decide which award to pursue. The whistleblower cannot receive two awards in connection with a single “related” action.

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