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SEC Whistleblower Lawyer Blog

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The latest $1.25 million award from the Commodities Futures Trading Commission (CFTC) goes to a whistleblower who first reported misconduct internally to their employer, who then ignored the report. Following 120 days of the company’s inaction, the individual submitted the information to the CFTC, who immediately opened an investigation. As part of the CFTC’s “safe harbor” rule, the whistleblower must wait 120 days after reporting internally before submitting information. This is the first time the CFTC’s 120-day “safe harbor” provision has applied to a whistleblower who worked in an auditing or internal compliance capacity. Individuals in these positions have more stringent requirements. This whistleblower complied with those requirements when reporting. The information from the whistleblower was original and given voluntarily. It was the only reason the CFTC opened its investigation. The information “was quite significant,” according to the order, calling it “useful” during the investigation.The latest $1.25 million award from the Commodities Futures Trading Commission (CFTC) goes to a whistleblower who first reported misconduct internally to their employer, who then ignored the report. Following 120 days of the company’s inaction, the individual submitted the information to the CFTC, who immediately opened an investigation. Continue reading

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The US Department of Justice is planning to launch its own whistleblower program using the same model as the Securities and Exchange Commission (SEC) and Commodities Futures Trading Commission (CFTC). They will offer financial incentives to individuals who report wrongdoing and are ineligible for other rewards. Deputy Attorney General Lisa Monaco announced the pilot program at an American Bar Association conference on white collar crime on March 7, 2024. The DOJ will develop the program over the next 90 days and launch the program later in the year. The Department will study the SEC’s and other federal whistleblower programs to develop its own. “Going back to the days of ‘Wanted’ posters across the Old West, law enforcement has long offered rewards to coax tipsters out of the woodwork,” Monaco said. “Now’s the time to expand our use of this tool in corporate misconduct cases and apply it to reward whistleblowing.”The US Department of Justice is planning to launch its own whistleblower program using the same model as the Securities and Exchange Commission (SEC) and Commodities Futures Trading Commission (CFTC). They will offer financial incentives to individuals who report wrongdoing and are ineligible for other rewards. Continue reading

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The Commodity Futures Trading Commission’s Whistleblower Office has a new director, Brian Young. The announcement was made recently by CFTC’s chairman, Rostin Behnam. He comes from the Department of Justice (DOJ), where he was previously the acting director of litigation for the Antitrust Division. Brian Young started his career at the Department of Justice (DOJ) as an Attorney General’s Honors Program Attorney in the Fraud Section of the Civil Division. There, he prosecuted violations of the civil False Claims Act, with a significant number initiated by whistleblowers. His work primarily targeted fraud within federal healthcare and defense programs. Young also managed criminal prosecutions under the Sherman Act and handled civil merger and antitrust conduct litigation. Before that, he spent 11 years in the Fraud Section of the Criminal Division, holding various positions. Eventually, he was appointed as the chief of the Fraud Section’s Litigation Unit, where he supervised the litigation efforts of around 150 white-collar prosecutors.The Commodity Futures Trading Commission’s Whistleblower Office has a new director, Brian Young. The announcement was made recently by CFTC’s chairman, Rostin Behnam. He comes from the Department of Justice (DOJ), where he was previously the acting director of litigation for the Antitrust Division. Continue reading

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The SEC (US Securities and Exchange Commission) has exacting criteria for both submission of whistleblower tips and their issuance of any financial bounties, including the amounts. How SEC Whistleblower Awards Are Determined The general rule for the award amount is 10% to 30% of all monetary fines collected from the entities in question based on a judgment in excess of $1 million. The money is not taken from investor funds. The fines and other civil penalties imposed on and collected from those involved in misconduct goes into the fund that pays the SEC’s whistleblower awards. Occasionally other federal agencies separately offer their own awards in addition to the SEC’s bounties. They are awarded and calculated separately from the SEC’s. The awards are not made automatically, and the whistleblower must submit a claim them once the case is published on the SEC’s website.The SEC (US Securities and Exchange Commission) has exacting criteria for both submission of whistleblower tips and their issuance of any financial bounties, including the amounts.

How SEC Whistleblower Awards Are Determined

The general rule for the award amount is 10% to 30% of all monetary fines collected from the entities in question based on a judgment in excess of $1 million. The money is not taken from investor funds. The fines and other civil penalties imposed on and collected from those involved in misconduct goes into the fund that pays the SEC’s whistleblower awards. Continue reading

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The U.S. Supreme Court has found that a whistleblower is entitled to protection from retaliation under federal law, and not required to show proof or intent from their employers. The Court ruled in favor of whistleblower Trevor Murphy who was awarded $900K in a jury verdict in 2017 after his employer, UBS, unlawfully fired him. The ruling was unanimous. SEC whistleblower attorney Scott Silver commented “This landmark Supreme Court decision will bolster whistleblower rights and protect whistleblower’s from retaliation in the workplace.” The justices then rejected UBS’s claim that Murray was required to show retaliatory intent for whistleblower protection under the Sarbanes-Oxley Act. This act is the law that governs corporate financial reporting and recordkeeping.The U.S. Supreme Court has found that a whistleblower is entitled to protection from retaliation under federal law, and not required to show proof or intent from their employers. The Court ruled in favor of whistleblower Trevor Murphy who was awarded $900K in a jury verdict in 2017 after his employer, UBS, unlawfully fired him. The ruling was unanimous.

SEC whistleblower attorney Scott Silver commented “This landmark Supreme Court decision will bolster whistleblower rights and protect whistleblower’s from retaliation in the workplace.” Continue reading

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The SEC (Securities & Exchange Commission) has filed a summary judgment against two former employees of Bridgewater, NJ-based Synchronoss Technologies, Inc. They are the former CFO, Karen Rosenberger, and the former Synchronoss controller, Joanna Lanni. The two engaged in accounting misconduct that led to the company’s overstatement of revenue. This led to the company meeting revenue expectations that it would not have otherwise. The SEC’s complaint details that Rosenberger aided and abetted the company’s public filing of false financial statements regarding five of Synchronoss’ transactions and engaged in fraud with three of them. The company had to later restate the five transactions. Two of these transactions were with AT&T, one of Synchronoss’s largest customers. Another transaction involved the company’s acquisition of another business.The SEC (Securities & Exchange Commission) has filed a summary judgment against two former employees of Bridgewater, NJ-based Synchronoss Technologies, Inc. They are the former CFO, Karen Rosenberger, and the former Synchronoss controller, Joanna Lanni. The two engaged in accounting misconduct that led to the company’s overstatement of revenue. This led to the company meeting revenue expectations that it would not have otherwise. Continue reading

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Scott Silver, has been selected as a top-rated securities litigation attorney by Super Lawyers for 2024. Scott was previously selected in 2021 and 2022. Lawyers ranked by Super Lawyers are generally considered to be the best lawyers in a particular practice area. Scott Silver formed a strategic alliance with attorney David Chase, a former SEC prosecutor, to represent SEC whistleblowers. This partnership combines their individual experience with SEC cases to offer whistleblowers strong legal representation and chance to maximize a whistleblower award. Both frequently speak on the subject at law schools, conferences, on podcasts, and other venues, and contribute thought provoking articles about the SEC whistleblower program to related publications. As chairman of the securities and financial fraud group of the American Association of Justice, Scott has spoken at many industry conferences about best practices in this unique practice area.Scott Silver, has been selected as a top-rated securities litigation attorney by Super Lawyers for 2024. Scott was previously selected in 2021 and 2022. Lawyers ranked by Super Lawyers are generally considered to be the best lawyers in a particular practice area.

Scott Silver formed a strategic alliance with attorney David Chase, a former SEC prosecutor, to represent SEC whistleblowers. This partnership combines their individual experience with SEC cases to offer whistleblowers strong legal representation and chance to maximize a whistleblower award. Both frequently speak on the subject at law schools, conferences, on podcasts, and other venues, and contribute thought provoking articles about the SEC whistleblower program to related publications. As chairman of the securities and financial fraud group of the American Association of Justice, Scott has spoken at many industry conferences about best practices in this unique practice area. Continue reading

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Attorney David R. Chase, part of the Securities Whistleblowers Attorneys team, has been again selected by SuperLawyers as a top-rated securities attorney for 2024. This is his third nomination after he was selected in 2021 and 2022. David’s experience as an SEC Enforcement Attorney gives him a strong understanding of how the Commission and its SEC whistleblower program function. Mr. Chase’s alliance with Scott Silver offers whistleblower clients optimal representation when dealing with the SEC. From working in the SEC's Division of Enforcement, David understands what type of information the SEC is most likely to investigate, and can guide whistleblowers through the process of submitting information to give whistleblowers the best chance of having their tip investigated and getting the largest award.Attorney David R. Chase, part of the Securities Whistleblowers Attorneys team, has been again selected by SuperLawyers as a top-rated securities attorney for 2024. This is his third nomination after he was selected in 2021 and 2022.

David’s experience as an SEC Enforcement Attorney gives him a strong understanding of how the Commission and its SEC whistleblower program function. Mr. Chase’s alliance with Scott Silver offers whistleblower clients optimal representation when dealing with the SEC. Continue reading

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In 2023 the SEC (Securities & Exchange Commission) handed out a record $600 million in bounties to whistleblowers responsible for billions in recovered funds. The funds are from fines and other financial penalties collected from companies that violate US securities laws. Whistleblowers can receive as much as 30% of the funds collected over $1 million. Since the beginning of the Whistleblower program in 2012, the SEC’s awards have totaled well over $1 billion. These awards incentivize those who contribute tips, and led to an increase of tip submissions to the SEC. Once submitted, there is an extensive process for processing and investigation before any monies are awarded. But while the SEC hasn’t awarded as many as in years past, 2023’s dollar amount was staggering.In 2023 the SEC (Securities & Exchange Commission) handed out a record $600 million in bounties to whistleblowers responsible for billions in recovered funds. The funds are from fines and other financial penalties collected from companies that violate US securities laws. Whistleblowers can receive as much as 30% of the funds collected over $1 million. Continue reading

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Would you sign an agreement with your broker-dealer if you knew you couldn’t complain if something went wrong? That’s exactly what JP Morgan required customers to do for three years, until the SEC stepped in. J.P. Morgan Securities LLC (JPMS) has paid $18 million in fines to settle charges that the firm required customers to sign an agreement prohibiting them from contacting the SEC if their credit or settlement exceeded $1,000. These agreements also required customers to keep all information confidential, including information related to their accounts. Customers were required to choose between receiving a settlement and reporting securities law violations to the SEC.Would you sign an agreement with your broker-dealer if you knew you couldn’t complain if something went wrong? That’s exactly what JP Morgan required customers to do for three years, until the SEC stepped in.

J.P. Morgan Securities LLC (JPMS) has paid $18 million in fines to settle charges that the firm required customers to sign an agreement prohibiting them from contacting the SEC if their credit or settlement exceeded $1,000. These agreements also required customers to keep all information confidential, including information related to their accounts. Customers were required to choose between receiving a settlement and reporting securities law violations to the SEC. Continue reading

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