Search Site
Menu

Three Compliance Officers Awarded $1 Million in SEC Claim

The Securities and Exchange Commission (SEC) recently awarded three compliance professionals a joint award of $1 million for their role in helping the agency uncover and prosecute misconduct at their firm.

As is always the case with SEC whistleblower awards, the identities of those whistleblowers were kept private, as well as any potential identifying information, such as their place of employment or the type of misconduct that led to the investigation.

There are special rules governing when compliance officers and internal auditors can secure SEC whistleblower awards. They must first attempt to report the matter internally to senior management. Only if management takes no action for 120 days can the officer then bring their concerns to the SEC and submit their whistleblower claim with the agency.

The SEC also did not indicate whether the three whistleblowers worked alone or in conjunction with each other.

SEC whistleblower awards

Under the Dodd-Frank Act, would-be whistleblowers can submit their tips directly to the SEC, and be eligible to recover compensation for their efforts if they provide unique, actionable and timely enforcement action that results in penalties of greater than $1 million. Whistleblowers can receive anywhere from 10-to 30 percent of the sanctions, depending on the level of their contributions to the enforcement.

The money paid out to whistleblowers in SEC cases is entirely funded by enforcement actions, meaning no taxpayer money goes to support the program.

The process of filing a whistleblower claim and including sufficient supporting information can be challenging. Whistleblowers can work with an attorney to guide them through the process and maximize their chances of earning compensation for their contributions.

For more information about how to proceed with filing an SEC whistleblower claim, contact an experienced whistleblower attorney at Kardell Law Group.

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

  • "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

  • "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.

FOLLOW US
Facebook Twitter Linkedin RSS Feed JD Supra