SEC Whistleblower Lawyer Blog
The SEC recently announced yet another sizeable award to an individual who came forward as a whistleblower. In the press release, the SEC described the $18 million award to a single individual who “refused to turn a blind eye to the wrongdoing, reporting misconduct internally and then to the Commission.”
The whistleblower first reported the conduct internally, and then notified the SEC, who then began an investigation. Information from this whistleblower was also closely related to the charges that were levied by the SEC. The cooperation, information, and assistance the individual provided proved invaluable to SEC staff, saving both time and resources throughout the investigation.
The $18 million award is a percentage of monetary sanctions and other costs collected from the company itself, not from recovered investor’s funds.
A second claimant’s application for award was denied after it was established that they did not contact the SEC within 120 days of internally reporting the conduct and did not lead to a successful enforcement action.
How Does The SEC Determine Awards
When considering an appropriate amount for an award, Exchange Act Rule 21F-6 states that the amount is at the discretion of the Commission. The act requires that the Commission consider:
- The importance of the provided information
- The assistance provided in the Commission’s action
- Law enforcement’s interest in deterring violations by granting awards
- The individual’s participation in internal compliance
- Culpability
- Any unreasonable delay in reporting
- Any interference with internal compliance and reporting
SEC whistleblowers receive between 10% and 30% of sanctions collected. Bounties and awards from other agencies are decided separately by those agencies.
Retaining Experienced SEC Whistleblower Attorneys
Whistleblowers help everyone by notifying the SEC of conduct that harms the investing public, while also earning financial compensation for themselves. Hiring experienced SEC counsel may greatly increase the probability that the SEC will initiate an investigation based on your information. If you wish to remain anonymous, you must be represented by an attorney, who will submit everything on your behalf. SEC whistleblower attorney Scott Silver commented that “courageous whistleblower’s working with experienced counsel can have an important impact on the disclosure of violations of the federal securities laws.”
Silver Law Group 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 guidance throughout the process. Our SEC whistleblower attorneys can help you if you have information regarding securities or investment fraud, violations of federal securities laws, false filings, market manipulation, or other misconduct. You must provide timely, credible, and original information or analysis 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.