The Securities and Exchange Commission (SEC) announced a $114 million whistleblower award, which is the highest in the program’s history. The whistleblower’s information and help led to a successful enforcement action.
The SEC’s press release states that the massive award is made up of a $52 million award related to the SEC case and a $62 million award from actions by another agency, which is not named. Continue reading
On September 30, 2020 the Securities and Exchange Commission (SEC) announced that it had awarded nearly $5 million to four whistleblowers who provided information on wrongdoing to the SEC that led to a successful enforcement action. The SEC has awarded $175 million to 39 whistleblowers this fiscal year, which is more than in any previous year.
Stephanie Avakian, Director of the Division of Enforcement said “Today marks the end of a record-setting year for the whistleblower program. We’ve made significant strides to further streamline and accelerate the evaluation of claims under the rules, substantially increasing the rate at which whistleblower claims are evaluated and awards are issued.” Continue reading
The Commodities Futures Trading Commission (CFTC) has announced a whistleblower award without revealing the dollar amount of the award in order to protect the whistleblower’s identity.
The CFTC may be making a habit of withholding the amount of whistleblower awards. Whistleblower attorney Scott Silver calls it “An important additional step that insulates whistleblowers from being identified and facing personal and professional retaliation.” Continue reading
On Thursday, June 4, 2020, the Securities & Exchange Commission (SEC) announced a $50 million whistleblower award, to a whistleblower who assisted authorities with a currency trading investigation.
The whistleblower, Grant Wilson, a former trader at Bank of New York Mellon Corp., notified the SEC, over a decade ago, that the bank was engaging in a pattern of overcharging big customers for currency trades. Continue reading
On July 21, 2010, the Dodd-Frank Act was signed into law, establishing one of the most critical pieces of reform legislation, regarding securities and commodities actions worldwide. The purpose of the Act was to promote transparency, financial stability and improve accountability in the financial markets following the 2008 financial crisis.
The Act also created the SEC’s Whistleblower’s Program, which enacted three primary types of new whistleblower laws: Continue reading
On Tuesday, April 28, 2020, the Securities & Exchange Commission (“SEC”) stated that it had awarded more than $18 million to another whistleblower this year. Tuesday’s award marks the fifth whistleblower award this month and the eleventh this year.
In 2020, the SEC Whistleblower Office has been very active and is recognizing multiple whistleblowers for their assistance in preventing ongoing securities and investment frauds. These cases frequently involve people blowing the whistle on a variety of misconduct from wrongdoing at major brokerage firms to ponzi schemes. Continue reading
On Thursday, April 16, 2020, the Securities & Exchange Commission (“SEC”) stated that it had awarded more than $27 million to a whistleblower who tipped officials to misconduct which occurred overseas, in part. This historical award “marks several milestones for the program,” according to Jane Norberg, Chief of the SEC’’s Office of the Whistleblower.
Following the whistleblower’s tip to the SEC, the whistleblower played a crucial role in assisting the Commission with their investigation. The whistleblower’s invaluable assistance helped the SEC save significant resources it would have expended otherwise. Continue reading
The CFTC (Commodities Futures Trading Commission) has announced that it will award over $1,000,000 to a whistleblower for providing a tip that helped to expose a scheme that violated the CEA (Commodity Exchange Act).
According to the press release, the whistleblower gave information first through their employer’s compliance program to another regulator, then to the CFTC.
The scheme isn’t named, but the release states that the tip led to charges being filed by the CFTC. Continue reading
On Friday, November 15, 2019 The Securities and Exchange Commission (SEC) announced that a whistleblower award of more than $260,000 had been given to three people who jointly alerted the agency to a “well-concealed fraud targeting retail investors.”
The SEC’s press release does not identify the fraud specifically, but does say that the whistleblowers were harmed investors themselves. Continue reading
If you worked for GPB Capital Holdings or a broker-dealer that sold it, and you have information that helps an SEC enforcement action, you could qualify to receive money from an SEC whistleblower award.
To be eligible for a whistleblower award, a person must provide the SEC with non-public information that is original and leads to a successful enforcement action. When the sanction is $1 million or more, a whistleblower award can range from 10% to 30% of the money collected. Continue reading
SEC Whistleblower Lawyer Blog