ATTORNEY NEWSLETTER
SEC Awards $20 Million To Whistleblower
Whistleblower’s Information Led To Enforcement
103 Whistleblowers Rewarded So Far This Year
Private citizens can help the government enforce the country’s securities laws and in certain cases receive awards where the citizen’s information aids in prosecution and recovery. Assistance and information from whistleblowers who know of possible securities law violations are among the most powerful weapons in the law enforcement arsenal of the U.S. Securities and Exchange Commission (SEC). The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”), Pub. L. 111-203, created the SEC Whistleblower Office to encourage and reward private individuals who bring information of securities fraud to the agency’s attention. See Dodd-Frank, 15 U.S.C. § 78a et seq.; Sarbanes-Oxley Act of 2002, Pub. L. 107-204; Securities Act of 1933, 15 U.S.C. § 77a et seq.; Securities Exchange Act of 1934 (“Exchange Act”), 15 U.S.C. § 78a et seq.; Rule 21F4(d), 17 C.F.R. § 240.21F-4(d)(2). Since creation of the SEC program in 2012 the SEC has now awarded over $1 billion to individual whistleblowers. If you have credible, original information of securities fraud in California call us today at (415)441-8669 and we can help. Our toll-free number is 1-888-50EVANS (888-503-8267).
Recent SEC Award[1]
On November 28, the U.S. Securities and Exchange Commission (SEC) announced that a whistleblower “who provided new and critical information that led to the success of an enforcement action” received a $20 million whistleblower award. The award order sheds light on the $20 million award and two other individuals who tried to be awarded for this enforcement action. Through the SEC Whistleblower Program, qualified whistleblowers are entitled to awards of 10-30% of the sanctions collected in the enforcement action aided by their disclosure. Thus, in each whistleblower-assisted case, 70-90% of sanctions are returned to harmed investors or the U.S. Treasury. The award order states that the whistleblower who won the award “voluntarily provided original information to the Commission and that this original information led to the successful enforcement of the Covered Action.” The whistleblower “provided significant information and continuing helpful assistance that enabled Commission staff to more quickly and efficiently investigate” issues related to the case, specifics of which remain redacted.
Awards, Confidentiality And Retaliation Protections
In fiscal year 2022, the SEC issued approximately $229 million in 103 awards, making it the SEC’s second highest year in terms of dollar amounts and number of awards. The Whistleblower Program also received a record high number of whistleblower tips alleging wrongdoing—more than 12,300 whistleblower tips—in fiscal year 2022.
As set forth in the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers and does not disclose any information that could reveal a whistleblower’s identity. The law also protects whistleblowers from employer retaliation for blowing the whistle on securities fraud under the Exchange Act, the Securities Act of 1933, 15 U.S.C. §§ 77a et seq, Rule 10b-5, or any other federal securities law. See 15 U.S.C. § 78u-6(h)(1); 17 CFR § 240.21F-2; Commission Rule 21F-17(a). If your employer retaliates against you in violation of the statute, you can bring an action in federal court seeking reinstatement, double back pay with interest, and attorneys’ fees and costs. 15 U.S.C. § 78u-6(h)(1)(B) and (C). We can represent you in your action for wrongful retaliation as well as in your underlying SEC whistleblower case.
Contact Us
If you have information of securities fraud call Ingrid M. Evans at Evans Law Firm at (415) 441-8669, or by email at <a href=”mailto:info@evanslaw.com”>info@evanslaw.com</a>. Our toll-free number is 1-888-50EVANS (888-503-8267).
[1] Evans Law Firm, Inc. was not involved in this proceeding in any way.
