The Commodity Futures Trading Commission’s Whistleblower Office has a new director, Brian Young. The announcement was made recently by CFTC’s chairman, Rostin Behnam. He comes from the Department of Justice (DOJ), where he was previously the acting director of litigation for the Antitrust Division. Continue reading
The SEC (US Securities and Exchange Commission) has exacting criteria for both submission of whistleblower tips and their issuance of any financial bounties, including the amounts.
How SEC Whistleblower Awards Are Determined
The general rule for the award amount is 10% to 30% of all monetary fines collected from the entities in question based on a judgment in excess of $1 million. The money is not taken from investor funds. The fines and other civil penalties imposed on and collected from those involved in misconduct goes into the fund that pays the SEC’s whistleblower awards. Continue reading
The U.S. Supreme Court has found that a whistleblower is entitled to protection from retaliation under federal law, and not required to show proof or intent from their employers. The Court ruled in favor of whistleblower Trevor Murphy who was awarded $900K in a jury verdict in 2017 after his employer, UBS, unlawfully fired him. The ruling was unanimous.
SEC whistleblower attorney Scott Silver commented “This landmark Supreme Court decision will bolster whistleblower rights and protect whistleblower’s from retaliation in the workplace.” Continue reading
The SEC (Securities & Exchange Commission) has filed a summary judgment against two former employees of Bridgewater, NJ-based Synchronoss Technologies, Inc. They are the former CFO, Karen Rosenberger, and the former Synchronoss controller, Joanna Lanni. The two engaged in accounting misconduct that led to the company’s overstatement of revenue. This led to the company meeting revenue expectations that it would not have otherwise. Continue reading
Scott Silver, has been selected as a top-rated securities litigation attorney by Super Lawyers for 2024. Scott was previously selected in 2021 and 2022. Lawyers ranked by Super Lawyers are generally considered to be the best lawyers in a particular practice area.
Scott Silver formed a strategic alliance with attorney David Chase, a former SEC prosecutor, to represent SEC whistleblowers. This partnership combines their individual experience with SEC cases to offer whistleblowers strong legal representation and chance to maximize a whistleblower award. Both frequently speak on the subject at law schools, conferences, on podcasts, and other venues, and contribute thought provoking articles about the SEC whistleblower program to related publications. As chairman of the securities and financial fraud group of the American Association of Justice, Scott has spoken at many industry conferences about best practices in this unique practice area. Continue reading
Attorney David R. Chase, part of the Securities Whistleblowers Attorneys team, has been again selected by SuperLawyers as a top-rated securities attorney for 2024. This is his third nomination after he was selected in 2021 and 2022.
David’s experience as an SEC Enforcement Attorney gives him a strong understanding of how the Commission and its SEC whistleblower program function. Mr. Chase’s alliance with Scott Silver offers whistleblower clients optimal representation when dealing with the SEC. Continue reading
In 2023 the SEC (Securities & Exchange Commission) handed out a record $600 million in bounties to whistleblowers responsible for billions in recovered funds. The funds are from fines and other financial penalties collected from companies that violate US securities laws. Whistleblowers can receive as much as 30% of the funds collected over $1 million. Continue reading
Would you sign an agreement with your broker-dealer if you knew you couldn’t complain if something went wrong? That’s exactly what JP Morgan required customers to do for three years, until the SEC stepped in.
J.P. Morgan Securities LLC (JPMS) has paid $18 million in fines to settle charges that the firm required customers to sign an agreement prohibiting them from contacting the SEC if their credit or settlement exceeded $1,000. These agreements also required customers to keep all information confidential, including information related to their accounts. Customers were required to choose between receiving a settlement and reporting securities law violations to the SEC. Continue reading
The SEC recently announced the award of over $28 million to seven individuals who submitted information to the Office of the Whistleblower that led to a successful enforcement action.
- The first whistleblower received $13 million
- Four whistleblowers received a joint award of $13 million
- Two whistleblowers received a joint award of $2 million
The SEC has released figures for recovery and returns for the Fiscal Year 2023. The press release details the record high $600 million paid to SEC whistleblowers, and the recovery of nearly $5 billion through a total of 784 enforcement actions, the second highest in history. Actions resulted in nearly $1 billion in returns to defrauded investors. Continue reading