As reported in the Wall Street Journal, employees of tech companies in Silicon Valley and elsewhere are increasingly coming forward to the Securities and Exchange Commission (SEC). These employees-turned-SEC whistleblowers are explaining how their companies are overpromising and underdelivering or otherwise violating the federal securities laws. In some cases, SEC…
In recent years, many investors have been looking for new ways to invest. One way funds have been doing that is by pooling a type of asset or debt into an investment fund. Ownership of the pool is sold as shares, with profits to be allocated between the shareholders if…
The SEC recently announced two amendments to their Whistleblower program rules that will make coming forward a little more lucrative for interested individuals. The first amendment to Rule 21F-3 allows the SEC to pay bounties to whistleblowers for actions brought by other federal agencies. This is particularly helpful when the…
Once again, two SEC whistleblowers will receive bounties through the SEC’s Office of the Whistleblower, following a successful enforcement action. The first SEC whistleblower receives $13 million after voluntarily providing information that initiated the investigation. They notified SEC staff of the firm’s “abusive practices” for several years prior to the…
In this blog, we often discuss the financial bounties that whistleblowers receive from the US Securities & Exchange Commission (SEC) and occasionally, the Commodities Futures Trading Commission (CFTC.) What isn’t always discussed is the time and effort that it takes for a whistleblower to get to that point. Recently the…
Scott Silver and David Chase were selected as top-rated securities litigation attorneys by Super Lawyers for 2022. Scott received the same award in 2021, and was previously selected for Super Lawyers’ Rising Stars list. David Chase was selected to Super Lawyers for years 2006-2007, 2009-2019, and 2021-2022. Scott and David…
In a recent press release, the SEC announced that it has awarded an individual a bounty of $17 million for their assistance as a whistleblower. The individual provided information that led to the SEC opening an investigation. Additionally, the individual gave continued assistance to SEC staff, speaking with them on…
In a recent press release, the US Securities & Exchange Commission (SEC) announced the award of more than $6M in bounties in two separate orders. Both orders involve providing information to the SEC for two covered actions. In the first order, the whistleblower was described as an “outside professional” who…
While Special Purpose Acquisition Companies (SPACs) SPACs—shell companies created for the sole purpose of funding the future acquisition of another company—have existed since the 1990s, interest (and investing) in them took off during the pandemic. But the rise of SPAC popularity means that hedge funds and others have been entering…
Leaders of the Securities and Exchange Commission (SEC) recently released its 2022 priorities for its Department of Examinations (EXAMS)—the office charged with monitoring risks and protecting investors. The SEC has made a point of saying the list is just a guideline. EXAMS will still pursue other investigations not on the…