The Securities and Exchange Commission (the “SEC”) announced on March 19, 2018 its largest whistleblower award: a $50 million bounty split between two whistleblowers and a $33 million award to a third whistleblower.
Prior to the combined $83 million award, the SEC’s highest whistleblower award was $30 million awarded in 2014.
In 2010, Congress added Section 21F to the Securities Exchange Act of 1934 (the “Exchange Act”). Part of 21F authorized the SEC to pay monetary awards to individuals who voluntarily provided the SEC with original information about a securities law violation that lead to the SEC sanctioning the wrongdoer in excess of $1 million.
Over the SEC whistleblower program’s life, the SEC has awarded more than $262 million to 53 whistleblowers since issuing its first award in 2012.
Whistleblower awards can range from 10 to 30 percent of the money collected when the monetary sanctions exceed $1 million. The whistleblower awards are paid through monetary sanctions paid to the SEC by securities law violators. Whistleblowers simply must provide the SEC with original, timely and credible information that leads to a successful enforcement action. The SEC protects the confidentiality of whistleblowers and does not disclose information that might directly or indirectly reveal a whistleblower’s identity.
Scott L. Silver, managing partner of the Silver Law Group, was an early proponent of the legislation and authored a primer on the SEC Whistleblower Program. Our legal team includes David R. Chase, a former SEC prosecutor now working to protect whistleblowers.
Silver Law Group and The Law Firm of David R. Chase are committed to the protection of whistleblowers through the whistleblower claim process and can prosecute your whistleblower claims. If you have questions about your legal rights as a whistleblower, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.