Continuing to award bounties to those who step up to report securities fraud, the SEC has recently awarded $5 million to a whistleblower for offering information and assistance. This information eventually led to a successful enforcement action where the SEC collected fines, sanctions, and other funds from the company.
The whistleblower first reported their concerns internally, then reported them to the SEC. The press release indicated that the whistleblower’s information also helped the SEC with their investigation. This included the identification of witnesses and the creation of requests for information and documents.
Creola Kelly, Chief of the SEC’s Office of the Whistleblower, stated, “The whistleblower in this case provided helpful information and substantial ongoing assistance, saving the SEC time and resources during its investigation.”
After posting the notice of the Covered Action on the SEC’s website, two claimants submitted separate whistleblower claims within the required 90 days. The first claimant’s information led to the SEC opening an investigation that culminated in a successful covered enforcement action.
The second claimant’s information was not as useful and called “vague and conclusory.” In their response, the second claimant discussed a “factual nexus” between their information and the covered action. This information did not lead to a successful enforcement action nor add to the first investigation.
The Claims Review Staff (CRS) denied the second claimant’s request in a preliminary determination. Claimant 2 provided a timely response, but the CRS concluded that their information “did not significantly contribute to the success of the covered action.”
The whistleblower bounty is awarded from a fund established by Congress with monies received from companies in the forms of fines and other financial sanctions. Investor funds are not used for any whistleblower awards. All identifying information is redacted from orders and other public documents to protect the whistleblower’s identity under the Dodd-Frank Act.
Retaining Experienced SEC Whistleblower Attorneys
Whistleblowers help to protect the financial markets and investing public by notifying the SEC of fraudulent conduct, while also potentially earning financial compensation for themselves. Hiring experienced SEC counsel may significantly 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.
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 professional guidance throughout the process. Our SEC whistleblower attorneys can help you if you have information regarding securities or investment fraud, accounting fraud, insider trading, pre-IPO fraud, illegal bribes to foreign officials, 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 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.