A pair of whistleblowers shared in a $50 million award from the Securities and Exchange Commission (SEC) for providing unique information that helped the agency bring an end to misconduct by JPMorgan Chase. The major financial institution allegedly hid information on some of its conflicts of interest from consumers, resulting in a $307 million SEC settlement. The whistleblowers received awards of $37 million and $13 million.
While the identities of the whistleblowers were not revealed (in keeping with SEC practice), one of the whistleblowers was a former high-ranking executive at the bank.
According to the whistleblower complaints, the bank regularly invested customers’ money in its own mutual funds and hedge funds and did not share that it was doing so with its customers. It would often disregard the best interests of its customers in doing so, compromising their long-term financial security.
SEC whistleblower program continues success
Last year was the biggest year yet for the SEC’s whistleblower programs, with a record number of tips (5,280), up 18 percent from 2017 and nearly doubling the number of tips received in the first full year of the program.
Since the SEC has begun receiving more and more tips, it has been paying particular attention to very solidly evidenced fraud cases. Any whistleblowers looking to receive an award through the program must gather their own evidence and build a solid case with the assistance of whistleblower attorneys before they file their report with the SEC. Otherwise, the SEC is likely to pass up the case for tips that have more evidence behind them.
For further guidance on filing a claim with the SEC’s whistleblower program, work with an experienced attorney at Kardell Law Group.