SEC Awards Whistleblower Bounty

Whistleblower Bounty

Securities Lawyer 101 Blog

On October 31, 2013, the Securities and Exchange Commission (the “SEC”)  announced an award of more than $150,000 to a whistleblower whose tips helped the agency stop a scheme that was defrauding investors.

The award recipient, who does not wish to be identified, provided significant information that allowed the SEC to quickly open an investigation and obtain emergency relief before additional investors were harmed.  Applicable laws require the SEC to protect the confidentiality of whistleblowers and not disclose any information that might directly or indirectly reveal an identity.

The award amount represents 30 percent of the money collected by the SEC in the successful enforcement action, the maximum permitted under the law.

“This is continued momentum and success for the SEC’s whistleblower program that is bringing our investigators valuable and timely information to stop ongoing frauds before additional investors can be harmed,” said Sean McKessy, chief of the SEC’s Office of the Whistleblower.

This is the sixth whistleblower to be awarded through the SEC’s whistleblower program since it began two years ago.  The largest award was announced earlier this month when a whistleblower was awarded more than $14 million.

For further reporting fraud to the SEC, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 201 S, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit This memorandum is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal and compliance advice on any specific matter, nor does this message create an attorney-client relationship. For more information concerning the rules and regulations affecting the use of Form 8K, FINRA Rule 6490, Rule 506 private placement offerings, Regulation A, Rule 504 offerings, Rule 144, SEC reporting requirements, SEC registration on Form S-1 and Form 10, Pink Sheet listing, OTCBB and OTCMarkets disclosure requirements, DTC Chills, Global Locks, reverse mergers, public shells, go public direct transactions and direct public offerings or please contact Hamilton and Associates at (561) 416-8956 or by email a [email protected]. Please note that the prior results discussed herein do not guarantee similar outcomes.