Hagens Berman’s Client and CFTC Whistleblower Receives $2 Million Award for Reporting Fraud under Dodd-Frank Act
The award recognizes the contribution of the whistleblower in providing critical information through independent analysis of market data. Under the CFTC’s Whistleblower Program created under Section 748 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the CFTC can pay an award to one or more whistleblowers in an aggregate amount between 10 and 30 percent of what the CFTC collects in monetary sanctions imposed in a given case.
“This award provided under the CFTC’s whistleblower program is a victory both for our client and for would-be commodities whistleblowers everywhere, showing the massive benefits whistleblowers stand to gain from reporting futures and other commodities fraud,” said Shayne Stevenson, partner and head of the whistleblower practice at Hagens Berman. “We’re incredibly pleased to have represented our client in this matter and to have been able to maximize this claim both to the benefit of our client financially and in protecting our client’s anonymity throughout. It’s also a reminder that no whistleblower should risk sharing valuable information without skilled representation.”
Hagens Berman’s whistleblower attorneys have successfully represented multiple whistleblowers under both the CFTC and the SEC’s Dodd-Frank whistleblower programs. In one of the first SEC whistleblower complaints filed under the new program, Hagens Berman’s whistleblower attorneys represented Haim Bodek, a long-time client and leading algorithmic trading expert, in his complaint against BATS Global Inc. Hagens Berman’s case resulted in the largest SEC fine ever imposed on a U.S. financial exchange. Hagens Berman also represents several other whistleblowers under both agency programs.
“Today’s award illustrates two key aspects of our Whistleblower Program — that an individual doesn’t have to be an insider to receive a whistleblower award and the Commission can pay awards based on related actions brought by other regulators,” said Christopher Ehrman, Director of CFTC’s Whistleblower Office. “I expect more awards to be issued to whistleblowers who provide our Enforcement Division with information based on their expert analysis of market data and to whistleblowers based on related actions.”
Since issuing its first award in 2014, through 2018, the CFTC has awarded more than $85 million to whistleblowers. The Division of Enforcement actions associated with those awards have resulted in sanctions orders totaling more than $675 million.
The whistleblower’s attorney, Hagens Berman partner and head of whistleblower practice, Shayne Stevenson, is available to speak regarding the implications of the case and other trends in whistleblower litigation. To schedule an interview, please contact the firm’s media contact, Ashley Klann, at 206-268-9363.
About Hagens Berman
Hagens Berman Sobol Shapiro LLP is a national law firm representing whistleblowers, with offices in nine cities. The firm’s tenacious drive for plaintiffs’ rights has earned it numerous national accolades, awards and titles of “Most Feared Plaintiff’s Firm,” and MVPs and Trailblazers of class-action law. More about the law firm and its whistleblower practice can be found at www.hbsslaw.com/whistleblower. Follow the firm for updates and whistleblower news at @WhistleblowerHB.
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