SEC Whistleblower Lawyer Blog
The SEC recently awarded two whistleblowers a total of $98M for original information they submitted that led to the opening of an investigation and a successful enforcement action involving misconduct.
The first whistleblower received the lion’s share of the bounty, which totaled over $87 million. For the second whistleblower, the award totaled over $16 million. Both awards were percentages of the financial sanctions collected in the case, which both included SEC actions as well as another enforcement action by a different federal agency.
In the footnotes of the SEC Order, it’s noted that:
The Commission may pay an award based on amounts collected in related actions that are based on the same original information that the whistleblower voluntarily provided to the Commission and that led the Commission to obtain monetary sanctions totaling more than $1 million. Exchange Act Rule 21F-3(b), 17 C.F.R. § 240.21F-3(b). The Commission finds that the judgment against [Redacted] and the and the Other Agency constitute “related actions” within the meaning of Exchange Act Rules 21F-3(b) and 21F-4(d)(3)(i).
Both individuals voluntarily provided significant and important information to the SEC about the misconduct, although not together nor at the same time. While the first claimant provided information on all the transactions and misconduct in question, the second individual submitted their information one year after the investigation began, and only offered new information on one transaction.
These whistleblower bounties are paid from a congressionally designated investor protection fund financed by financial sanctions awarded against wrongdoers. No recovered investor funds are used for these awards. Under Dodd-Frank, whistleblower identities and any identifying information are kept confidential.
Our SEC whistleblower attorneys highlight the importance of these recent awards which demonstrate the importance of filing quickly and offering original substantive information to the SEC. The best SEC whistleblower tips provide the SEC with a roadmap highlighting the who, what, and when the federal securities laws were violated. Our experienced SEC whistleblower tips help whistleblowers navigate the whistleblower process and maximize any SEC whistleblower award.
Retaining Experienced SEC Whistleblower Attorneys
SEC 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.
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.