SEC Whistleblower Lawyer Blog
The US Department of Justice is planning to launch its own whistleblower program using the same model as the Securities and Exchange Commission (SEC) and Commodities Futures Trading Commission (CFTC). They will offer financial incentives to individuals who report wrongdoing and are ineligible for other rewards.
Deputy Attorney General Lisa Monaco announced the pilot program at an American Bar Association conference on white collar crime on March 7, 2024. The DOJ will develop the program over the next 90 days and launch the program later in the year. The Department will study the SEC’s and other federal whistleblower programs to develop its own.
“Going back to the days of ‘Wanted’ posters across the Old West, law enforcement has long offered rewards to coax tipsters out of the woodwork,” Monaco said. “Now’s the time to expand our use of this tool in corporate misconduct cases and apply it to reward whistleblowing.”
Insiders who are not proactive and fail to come forward will face prosecution themselves. Monaco mentioned the CEOs of FTX and Binance, who have both been criminally convicted.
Monaco also stated that prosecutors would take decisive action against the misuse of artificial intelligence for criminal activities. She emphasized that in cases where criminals enhance their schemes with AI technology, prosecutors will pursue harsher penalties.
Whistleblowers who offer tips on corporate crime and other wrongdoing can be paid after a person or company settles civil claims or is sentenced in a criminal conviction. Victims will be compensated first, then bounties will come from the financial forfeitures.
Monaco also said that the key in the DOJ’s whistleblower program is that the information submitted must not be something the agency already knows and be the first to submit their information. However, those engaged in wrongdoing themselves would not be eligible for a DOJ whistleblower award.
The DOJ will have a keen focus on details regarding misconduct within the U.S. financial systems, instances of foreign corruption falling beyond the SEC’s scope, and cases of domestic corruption, especially those entailing corporate payments to governmental figures.
Additional details are expected later from Acting Assistant Attorney General Nicole M. Argentieri. The text of Monaco’s speech to the ABA is available on the Department of Justice website.
Despite the SEC’s incredible success, the various agencies’ patchwork of programs do not cover everything. The Justice Department hopes that its own program would help close some of the spaces in the federal whistleblower framework.
Since its inception, the SEC’s program has awarded $1.9 billion to 397 individual whistleblowers. In the last fiscal year alone, the SEC received over 18,000 tips, and awarded $600 million to whistleblowers. The CFTC awarded $16 million in the last fiscal year.
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 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 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.