Is it Possible to Receive an SEC Whistleblower Award When Reporting Financial Fraud?
The U.S. Securities & Exchange Commission’s whistleblower program allows eligible whistleblowers to obtain monetary awards when providing the agency with original information about securities violations, which may include financial fraud. If the SEC uses the information you provide to bring a successful enforcement action against the offender, you could receive anywhere from 10 to 30 percent of the sanctions collected as a personal award.
There are even some situations in which the SEC allows accountants and auditors to report incidents of financial fraud, making them eligible for these awards, as well.
A history of awards
There are demonstrable instances of these types of awards being handed out by the SEC in financial fraud cases. For example, in August 2016, the SEC awarded more than $22 million to a whistleblower who revealed financial violations committed by Monsanto. The agency levied an $80 million fine against the company, and the whistleblower was awarded 27.5 percent of the money collected in the sanctions for that case.
You are able to make these reports without having to worry about your identity being compromised. The SEC Whistleblower Program is required to protect the whistleblower’s identity. It keeps all information provided by the whistleblower strictly confidential and does not include any information that could reveal his or her identity. Whistleblowers can also file their reports anonymously if represented by an attorney. There are even circumstances in which the whistleblower can remain anonymous, even to the agency, until the award for the case has been determined, but even after the award the whistleblower’s identity will never be revealed publicly.
For more information on reporting financial fraud and the potential awards you could recover from the SEC, speak with an experienced Dallas whistleblower lawyer at Kardell Law Group.