The SEC announced today that it has awarded $22 million to two individuals who provided “information and assistance” to the agency that resulted in a successful enforcement action against a financial services firm.
The first whistleblower received a whopping $18 million award due to being the original source of information that started the investigation.
The agency awarded the second whistleblower $4 million submitted important information during the course of the investigation, after it began.
Both whistleblowers provided reliable information and offered assistance that helped the agency in understanding the complexity of the transactions related to the investigation.
Whistleblowers can become eligible for awards when they provide the agency reliable information that leads to a successful enforcement action.
All awards are made from the Congressionally-created investor protection fund bankrolled with collected sanctions from securities law violators. No funds are ever taken from anything recovered on behalf of defrauded investors. The awards are from 10% to 30% of monetary sanctions that exceed $1M from these violators. The SEC has awarded $838 million to more than 150 individuals since the beginning of the whistleblower program in 2012.
The whistleblowers were not named, nor was the company accused of misconduct that was involved in the enforcement action. This is in keeping with the federal government’s policy of keeping all details confidential to protect the identity of the individuals involved in the information gathering.
Whistleblowers can submit tips anonymously if they are represented by legal counsel. The whistleblower program also includes protections from retaliation. This SEC award exemplifies the reason why people with substantive evidence should submit information to the SEC whistleblower office even if an investigation is underway because the SEC can make more than one award or give substantial credit to anyone who helps further an investigation.
You can learn more about the Office of the Whistleblower at the SEC’s website, including information on submitting tips.
Our SEC Whistleblower Attorneys Can Help you Report Fraud to the SEC
The SEC is interested in any kind of federal securities violations that harms the investing public. Employees, investors, and customers may become aware of a company’s misconduct and want to put a stop to it. These violations can include:
- Insider trading
- Investment/securities fraud
- Accounting fraud
- Ponzi schemes and other fraudulent securities offerings
- Manipulation of the price or other security volume or price
- Offerings of unregistered securities, including “alternative investments”
- Fraud with hedge funds
- Fraud by an investment advisor
- False or misleading statements regarding an investment or a company
These are just some of the many reasons to report an individual or a company’s activities. If you see something, say something—you may save someone’s life savings for them.
Retaining Experienced SEC Whistleblower Attorneys
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. To be eligible, you must provide timely, credible, and original information or analysis.
Whistleblowers help the public by notifying authorities of conduct that harms the public, while also earning financial compensation for themselves. More information on the SEC Whistleblower office and our attorneys is available at securitieswhistleblowerattorneys.com.
Contact us through our online form or at (800) 975-4345 for a consultation. Our attorneys work on a contingency fee basis, which means it costs nothing to hire us and we have the incentive to get you the maximum award.