SEC Awards Whistleblowers For Reporting Securities Fraud

sec whistleblowerOn January 22, 2020, the Securities and Exchange Commission (“SEC”)  announced two whistleblower awards in connection with two separate SEC  enforcement actions.  Both whistleblowers provided significant information that helped the SEC shut down two separate fraudulent schemes involving retail investors.  In the first action, the whistleblower alerted the agency to a fraudulent scheme.  The whistleblower received a SEC bounty of more than $277,000.  In the second action, the whistleblower, a harmed investor, provided critical information that enabled the SEC staff to recover assets that were later returned to victims.  The whistleblower received a SEC  bounty of $45,000.

“Both whistleblowers awarded today played a crucial role in helping the Commission protect Main Street investors,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower.  “The information provided saved the SEC time and resources in conducting the investigations and assisted the SEC in returning money to harmed investors.”

The SEC has awarded approximately $387 million to 72 individuals since issuing its first award in 2012.  All payments 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.  No money has been taken or withheld from harmed investors to pay whistleblower awards.  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.

As set forth in the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers and does not disclose information that could reveal a whistleblower’s identity.

For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit www.securitieslawyer101.com.   This securities law blog post 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 advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.

Hamilton & Associates | Securities Lawyers
Brenda Hamilton, Securities Attorney
101 Plaza Real South, Suite 202 North
Boca Raton, Florida 33432
Telephone: (561) 416-8956
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www.SecuritiesLawyer101.com