SEC Whistleblower Program Passes Half Billion Dollar Milestone
SEC Whistleblower Program Passes Half Billion Dollar Milestone
The SEC has announced that after its latest award of $700,000 to a whistleblower, it will have awarded almost $501 million to 84 individuals since issuing its first award in 2012. The announcement, made on June 19, 2020, reiterated that payments do not come from the money recovered to repay harmed investors, but instead are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action. Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million.
The program is part of the Dodd-Frank Act, and the SEC protects the confidentiality of whistleblowers and does not disclose information that could reveal a whistleblower’s identity.
“Because of the whistleblower’s actions, the agency was able to identify the misconduct and conserve time and resources during the investigation,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “This whistleblower stepped forward and helped the agency to protect and compensate harmed investors.”
Assistance and information from a whistleblower who knows of possible securities law violations can be of tremendous assistance to the Securities and Exchange Commission. Through their knowledge of the circumstances and individuals involved, whistleblowers can help the Commission identify possible fraud and other violations. That allows the Commission to more efficiently and effectively minimize the harm to investors, better preserve the integrity of US capital markets, and more quickly hold those responsible for unlawful conduct accountable.
If you have information regarding a possible securities fraud or violation, you can find more information about this program at https://www.sec.gov/whistleblower. The lawyers at Faruqi & Faruqi are ready to assist you and consult with you regarding your options.
Faruqi & Faruqi, LLP focuses on complex civil litigation, including securities, antitrust, wage and hour and consumer class actions as well as shareholder derivative and merger and transactional litigation. The firm is headquartered in New York, and maintains offices in Atlanta, Los Angeles and Philadelphia.
Since its founding in 1995, Faruqi & Faruqi, LLP has served as lead or co-lead counsel in numerous high-profile cases which ultimately provided significant recoveries to investors, direct purchasers, consumers and employees.
To schedule a free consultation with our attorneys and to learn more about your legal rights, call our offices today at (877) 247-4292 or (212) 983-9330.
Robert W. Killorin is a Partner Faruqi & Faruqi, LLP’s Atlanta Office and is a member of the firm’s Institutional Investor Practice Group and Co-Chair of the firm’s Securities Litigation Practice Group.
