Whistleblower

Pacific Gas and Electric Co. (PG&E) was vindicated Wednesday in a recent whistleblower’s case, which alleged negligence by the utility in its handling of pipe welds on critical parts of its 6,000-mile natural gas transmission system.

The Commodity Futures Trading Commission (CFTC) has approved final regulations regarding whistleblower incentives and protection, including provisions to pay individuals who provide the Commission with information about Commodity Exchange Act violations as much as 30% of monetary sanctions subsequently collected. The rules, which the CFTC approved by a 4-1 vote, would allow the Commission to award whistleblowers 10-30% of the monetary sanctions collected in either a CFTC-covered judicial action, administrative action or related action. Actions covered by the regulations include only those resulting in successful resolution resulting in monetary sanctions exceeding $1 million, and the Commission would exercise discretion in granting awards based on several criteria, including the significance of the information provided by whistleblowers. The final regulations become effective 60 days after publication in the Federal Register.