Whistleblower Receives Over $37 Million from SEC
- posted: Apr. 18, 2023
- Whistleblower Litigation, Fraud
The Securities and Exchange Commission awarded over $37 million to a whistleblower who came forward with information leading to a successful SEC enforcement action, and a related action.
The SEC’s Office of the Whistleblower
When whistleblowers come forward to the SEC’s Office of the Whistleblower, they report alleged misconduct to the SEC and other appropriate government agencies. The SEC may choose to investigate the claims and proceed with an enforcement action.
In this case, the whistleblower originally reported the misconduct internally. Their employer conducted an internal investigation and reported the alleged misconduct to the SEC—but the whistleblower is the one who receives credit for the claim, since they provided the same information to the SEC within 120 days of their initial internal report.
The funds for whistleblower awards come from an investor protection fund established by Congress. This is financed by monetary sanctions paid to the SEC by violators of securities law, as opposed to harmed investors.
If you have information about financial or other company violations, you may be eligible for a whistleblower award. Whistleblowers who voluntarily provide the SEC with “original, timely and credible information” which leads to a successful enforcement action may receive anywhere from 10 to 30 percent of the money collected when sanctions exceed $1 million. Furthermore, a whistleblower’s identity is concealed by the SEC under the Dodd-Frank Act, which further incentivizes whistleblowers to speak up.
When you’re ready to blow the whistle on your employer or other bad actors, a knowledgeable whistleblower attorney at Kardell Law Group can help. Call today to learn more.
