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SEC Pays Out $50 Million to JP Morgan Whistleblowers

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.

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  • "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

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