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SEC Accepts Tips, Even if Investigation is Already Open

After the U.S. Securities and Exchange Commission (SEC) has opened an investigation into potential wrongdoing, some people make the mistake of believing they would no longer be able to collect a whistleblower award if they were to come forward with information. However, that’s not the case at all.

If you have information that can aid in an existing investigation, you may be eligible for an award if what you provide contributes in a significant way to the SEC’s success in an enforcement action. In fact, the SEC reported in 2016 that these types of whistleblower reports made up about 40 percent of all awards the agency provided that year.

Tips come in throughout many investigations

Basically, you could qualify for a whistleblower award if you enable the SEC to process an investigation more quickly, expand the scope of an investigation or provide the agency with information on additional parties involved in the alleged wrongdoing.

The largest award the SEC has issued to a whistleblower who aided an existing investigation was in May 2016 for $3.5 million. The individual in that case provided information that bolstered the SEC’s case, leading to a successful enforcement action. In a press release, the agency said the whistleblower’s tip gave federal officials leverage during settlement negotiations.

If you would like to learn more about reporting information to the SEC as part of an ongoing investigation, it’s important to have legal counsel advising you along the way. For further advice, consult a skilled Dallas attorney at Whistleblower Law for Managers.

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In his new book, "Standing Up to China: How a Whistleblower Risked Everything for His Country," former client & Author, Ashley Yablon, quotes Attorney Steve Kardell about Whistelblower Law.
  • "Steve Kardell was terrific in representing me in some very adversarial discussions with Citigroup and also later represented me in my testimony before the Financial Crisis Inquiry Commission."  -Richard Bowen, Citigroup Whistleblower

  • "Incredible knowledge of employee related concerns and equally brilliant knowledge of health care regulations, standards of practice. I would recommend this firm to anyone."  -V.B.

  • "Reaching out to Steve Kardell was the best decision I made. His ability to provide immediate insight and direction was very powerful, and a huge relief during a very stressful time period. For anyone struggling with a whistleblower situation, I would highly recommend at least speaking with Steve. After a 10 minute call with him, I had a better understanding of what I was dealing with. Even better, he gave me some immediate hope. In the end Steve did a better job than I thought was possible. Steve was able to get in contact with people in my organization, that I didn’t have access to. Because of his years of experience, he already has contacts in many organizations in Dallas. The entire situation was handled peacefully. I was impressed by his ability to “keep the peace”–rather than creating a battle with the organization. The reason I didn’t reach out to a lawyer initially, was because I thought it would mean an immediate end to any hope of a positive relationship with the company. Steve was able to address my concerns, and in the end I was able to continue to work for them."  -KS

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