ATTORNEY NEWSLETTER
In the past two years there have been two whistleblower awards made by federal securities regulators. Officials say that more awards are on the way and that whistleblowers should be patient when waiting. California whistleblower attorneys remind the public that whistleblowers are an important component in the fight against fraud.
According to the Regional Director of the U.S. Securities and Exchange Commission’s Los Angeles field office, the agency receives about 300 whistleblower tips per year. Responding to whistleblower tips is time consuming and tips come from all 50 states and some foreign countries. The tips they receive are about alleged securities law violations and are complex in nature. Tips cover a wide range of topics, from corporate reporting to market manipulations, and sometimes investment fraud. The more complex the allegations, the more time it takes to complete the investigation.
After the Securities and Exchange Commission completes an investigation, then it takes action. A whistleblower receives their award if an action results in more than $1 million dollars in sanctions against the entity that committed the fraud. A spokesman for the Securities and Exchange Commission stated that the agency tries to bring cases as quickly as possible but that the investigations take a long time due to the complex nature of the subject matter.
The Securities and Exchange Commission Whistleblower Office was created as part of the Dodd-Frank financial legislation. The Securities and Exchange Commission offers a 10-30% reward of collected penalties to whistleblowers that significantly help the investigation. The Dodd-Frank legislation offers protections to whistleblowers against retaliation by their employer.
The first Securities and Exchange Commission whistleblower award came last August for almost $50,000. In that case, an individual who assisted the Securities and Exchange Commission with stopping a multi-million dollar fraud got the reward. The second Securities and Exchange Commission whistleblower award came this June. In that case, three whistleblowers provided tips about an investment fraud that helped to send a hedge fund chief executive to prison.
Evans Law Firm, Inc. handles whistleblower/false claims, consumer fraud class actions, insurance and banking fraud, consumer product liability, elder abuse, and personal injury cases. If you think that you have witnessed or are the victim of financial fraud by an insurance company, bank or individual then, contact Evans Law Firm, Inc. at (415) 441-8669 for a free and confidential consultation, or email info@evanslaw.com.
