The SEC continues to award whistleblowers who provide pertinent information leading to successful enforcement actions.
$2.6 million was recently awarded for three different orders involving five individuals who assisted the SEC.
- In the first award of $1.2 million, a whistleblower provided the SEC with information obtained from a self-created and complex algorithm. Applying the algorithm to publicly available information, the whistleblower supplied this analysis to the SEC. The analysis helped staff during settlement negotiations of an enforcement action as well as save considerable time and resources. The whistleblower provided continued assistance to the SEC, including emails and multiple phone calls. Although the independent analysis used publicly available information, it also revealed information that wasn’t known to the public.
- The second order saw three whistleblowers awarded over $1M who provided information leading to a successful enforcement action separate from the first. These individuals worked for a company where they were involved with compliance. After making an internal report to their company on the potential securities violations, they also reported the information to the SEC.
Even though the individuals made the report more than 120 days after reporting it internally, they were still eligible for an award because they satisfied the 120-day exemption. The first whistleblower received the largest award because they provided information and assistance that ensured the success of the enforcement action. Two of the three provided ongoing assistance during the investigation and enforcement action.
- The third order saw a $350,000 award to a whistleblower who similarly offered an independent analysis of information to the SEC. The case involved a microcap company and its “suspicious” promotional campaigns for the company stock.
From the order: “Claimant’s information, including a comparison of the language in touting emails with emails in other promotional campaigns, was the product of unusual effort and expertise developed over many years and helped establish the connection between the Company and previous or ongoing promotional campaigns that were suspicious in nature.”
This analysis included identifiable patterns from publicly available information that helped the SEC identify wrongdoing immediately, put a stop to it, and safeguard assets in the process. This individual had expertise and years of industry-specific experience that led to the analysis. Their “timely identification” of the company in question helped the SEC staff secure assets and bring the enforcement action.
Retaining Experienced SEC Whistleblower Attorneys
Whistleblowers help everyone by notifying authorities of conduct that harms the public, while also earning financial compensation for themselves. Hiring experienced SEC counsel will greatly increase your chances of the SEC initiating an investigation based on your information. If you wish to remain anonymous, you must be represented by an attorney, who will submit everything on your behalf.
Silver Law and the Law Firm of David R. Chase jointly have experienced SEC whistleblower lawyers, including a former SEC Enforcement attorney on the team, so you will always have guidance throughout the process. Our SEC whistleblower attorneys can help you if you have information regarding securities or investment fraud, violations of federal securities laws, false filings, market manipulation, or other misconduct. You must provide timely, credible, and original information or analysis in order to be eligible.
Contact us through our online form or at (800) 975-4345 for a consultation. Our attorneys work on a contingency fee basis. This means that it costs you nothing to hire us, and we collect our fees when you receive an SEC bounty. Because we get paid when you do, we have the incentive to help you collect the maximum award available.