Search Site
Menu
SEC Awards Whistleblower $4.5 Million for Revealing Wrongdoing

The U.S. Securities and Exchange Commission (SEC) recently awarded a whistleblower more than $4.5 million after a tip the individual provided resulted in an employer reviewing allegations in an internal investigation and then reporting those allegations and its investigational findings to the SEC and another agency.

According to the SEC, the whistleblower submitted an anonymous tip to the company alleging wrongdoing and then also submitted that information to the SEC within 120 days of the initial internal report. The company was then able to investigate the allegations and make the proper reports to the Commission. By the time the investigation was complete, the company and the SEC were able to take appropriate action.

This marks the first time a claimant was awarded under this provision of whistleblower rules, which exists to incentivize internal reporting.

SEC awards continue to increase

With this case, the SEC has now awarded approximately $381 million to a total of 62 whistleblowers since the program began. The first award was granted in 2012. All money from the program comes from the monetary sanctions paid to the SEC by violators of securities laws—none of the money comes from investors who were harmed by those violators.

Whistleblowers who provide the SEC with timely, original and credible information are eligible to receive anywhere from 10 to 30 percent of the collected money if the sanctions are greater than $1 million. The program has been widely considered to be a rousing success since it was established, and this latest award opens up another avenue for whistleblowers to recover some significant compensation.

For more information on the steps involved in filing an SEC whistleblower claim, contact an experienced whistleblower lawyer at Kardell Law Group. Seeking the advice of an attorney allows you to ensure you use the right wording when making an internal report.

Honors
Our Office
  • Dallas Office
    4514 Cole Ave
    #600
    Dallas, Texas 75205
    Phone: 214-306-8045
    Fax: 469-729-9926
Testimonials
  • "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

  • "Never thought my career would end like it did after 30 years of service. I was part of the first round of the so called reduction of force. I asked myself how can I be part of this with 30 years of seniority. How did they pick these 90 plus employees? Now, the culture of this organization made you question every decision they made. It wasn’t what you knew it’s was a culture of who you know. Nonetheless, I did not accept their severance package. I immediately starting looking for an attorney who would take on my case. After the initial call to Steve I had hope again. He was open and honest about everything and reassured me he would do his best for me, and he did. I had an awesome outcome. Thanks Steve you’re the best."  -S.S.

  • "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

FOLLOW US
Facebook Twitter Linkedin RSS Feed JD Supra