GS2Law Obtains Largest CFTC Whistleblower Award in History
New York, NY, April 4, 2016 – The Commodities Futures Trading Commission (“CFTC”) announced today that it has approved a record whistleblower award for a whistleblower represented by Garson, Ségal, Steinmetz, Fladgate LLP (“GS2Law”).
The whistleblower will receive over $10 million for providing information and assistance that initiated an investigation by the CFTC and resulted in a substantial recovery by the U.S. Government. The reward is the largest the CFTC has made under the Dodd-Frank whistleblower program, created by Congress in 2010.
“Our client lifted the lid on, and exposed, carefully orchestrated and deeply entrenched unlawful practices,” said Rob Garson, a partner at GS2Law, which has unparalleled experience in representing CFTC whistleblowers. “It is imperative that members of the public take note of the bravery of people like our client and step forward to assist Federal regulators.”
In order to encourage whistleblowers to step in reporting wrongdoing, the Dodd-Frank Act permits CFTC whistleblowers to remain anonymous.
“After our client provided detailed information, the CFTC moved swiftly and the investigation began immediately,” said Chris Fladgate a partner at GS2Law
Garson and Fladgate praised government enforcement officials for their work, particularly the CFTC Whistleblower Office and the CFTC Division of Enforcement. “This is a fantastic example demonstrating that the CFTC whistleblower program can reward and protect those who would otherwise be made pariahs within the industry, while also improving global practices and restoring public confidence,” Garson said.
“CFTC enforcement officials worked with GS2Law and the whistleblower and, as a result, the CFTC continues to call major institutions to account for their wrongdoing. Both our client and GS2Law wish to thank the CFTC investigations team who worked tirelessly on this matter, as well the CFTC Whistleblower Office, headed up by Chris Ehrman for its continued support and guidance throughout this landmark matter,” added Fladgate.
The Dodd-Frank Act authorizes the CFTC to award whistleblowers between 10 percent to 30 percent of the amount collected as a result of the whistleblower’s information.
Garson noted “A whistleblower can be anyone who observes unlawful behavior like support staff, interns or personal assistants. You don’t have to be an executive or a trader to be a whistleblower.”
For more information, see the CFTC press release, PR7351-16
GS2Law is an international law firm based in Manhattan.