SEC Whistleblower Lawyer Blog
The SEC has announced its award of $6 million to joint whistleblowers who offered credible information on violations of US securities laws. Their assistance led the Commission’s Division of Examinations (Exams) to open an examination based on the tips and information provided. In the interest of confidentiality, the SEC did not disclose the number of the whistleblowers.
Because the whistleblowers presented themselves as a team, and were all represented by the same legal counsel, the SEC decided to treat the joint claimants as one whistleblower for this case. The information was useful and of interest to the SEC, and the investigation led to a successful covered action that included financial sanctions. The whistleblowers were awarded a percentage of the collected sanctions from the action.
Joint Whistleblowers
Two or more individuals can join forces to submit information to the SEC instead of separately. The Securities Exchange Act of 1934’s Section 21F(a)(6) defines “whistleblower” to mean anyone who alone or jointly with others that offers information to the SEC that describes possible violations of US securities laws.
Joint whistleblowers have the same protection as individual whistleblowers, offering the opportunity to strengthen the information they submit. They are offered the same legal protections as an individual whistleblower, including protections from retaliation. While the percentage of sanction is the same as for individual whistleblowers, 10% to 30% of the collected financial sanctions, the total amount will be divided among the whistleblowers.
If two or more individuals decide to submit their information together, both will need to file a joint Form WB-APP within 90 days of the Notice of Covered Action to claim an award. Having the same legal counsel will help ensure that the same information is being shared. If you submit this information separately, one party may be awarded while the other may not, depending on who submitted first.
Should you and another party decide to submit information to the SEC, speak with an attorney who understands the SEC’s whistleblower program before submitting any information. They can advise you on the best course of action for your situation.
Retaining Experienced SEC Whistleblower Attorneys
Whistleblowers help everyone by notifying the SEC of conduct that harms the investing public, while also earning financial compensation for themselves. Hiring an experienced SEC counsel may greatly increase the probability that the SEC will initiate 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 Group 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 to be eligible.
Contact us through our online form or call us 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 only if you receive an SEC bounty. Because we get paid when you do, we have the incentive to help you collect the maximum award available.