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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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