In an article for Forbes.com, Phillips & Cohen attorney Erika Kelton argues that the US Commodity Futures Trading Commission’s and the Securities Exchange Commission’s whistleblower reward process is too slow and cumbersome to effectively serve its intended purpose. The article was published on August 27, 2018.
For many whistleblowers who have provided information that the CFTC and the SEC have used to undertake successful enforcement actions, the award process is frustrating and discouraging. The process can be akin to a hamster wheel, as whistleblowers who provided information to the agencies and who have submitted all of the necessary paperwork for an award sometimes feel they are getting nowhere closer to receiving an award.
Both the SEC and CFTC need to develop ways to speed up the whistleblower award process so that meritorious claims do not take years to resolve.