PART II
In the first half of this blog post, I reviewed how establishing material facts and determining your eligibility to make a whistleblower claim to the SEC are critical first steps in your case. Now, I will go over three more vital steps to receiving a multi-million dollar SEC award.
Act Fast, Act First
The SEC has little use for “old news.” You have an opportunitNewy to attain ten to thirty percent of any penalty the SEC collects from a company it successfully prosecutes, but only if you are the first to provide them with the tip that leads to that prosecution. You must consider that if you know of illegal activities at a corporation, others likely do as well. If you both become whistleblowers, only the first to tip off the SEC with that information will receive a reward, and the second to file may get nothing. While a second whistleblower may get some reward if their tip “significantly contributes” to the prosecution, there is no guarantee to those second or third in line.
Another consideration is how fast you acted on reporting illegal information once you became aware of it. An award may be significantly reduced if a whistleblower only came forward once they know an investigation was imminent. Another reason for a reduction is when the whistleblower participated in the illegal activity and failed to stop it from occurring. Basically, the more culpable you are and the longer you delay due to your own participation in illegal acts, the more your reward may be reduced by the SEC.
Know the SEC’s Rules
Besides those listed above, there are other SEC rules affecting whether the SEC will increase or decrease your reward for whistleblowing. Some examples involving delay and culpability were discussed above that may reduce a reward. Similarly, your reward may be reduced if you were involved with disabling or improperly subverting a corporation’s compliance systems that would have normally caught the illegal activity in question.
With the help of experienced whistleblower counsel, you may also be able to increase the size of your award. For example, if you provide a significant tip that alerts the SEC to illegal conduct that they are particularly interested in policing, that may result in a more significant reward. Similarly, if you provide a significant amount of help to the SEC in either gathering evidence or prosecuting their case, your reward may be increased.
Your Whistleblower Tip Should be Attention-Grabbing
Like many government agencies, the SEC’s Whistleblower Office is tasked with doing a lot with a small staff. They receive thousands of tips each year, but can only process a small fraction. You are taking a great risk by filing a tip, so how do you make sure that risk generates a significant reward? Working alongside experienced whistleblower counsel, you can draft a tip that successfully catches the SEC’s attention.
First, make the SEC’s work easier for them; avoid general tips that do not clearly indicate how a case will be prosecuted. Instead, lay out how the whistleblower tip can easily be prosecuted. Second, show the SEC that the violation is clearly material, meaning that it is demonstrably a violation of the law. Finally, provide actual documentary evidence of your claim. Many tips are just allegations, and providing physical evidence is an important first step to demonstrating that the claim can be prosecuted successfully.
What Should You Do if You are Considering a Whistleblower Claim?
Are you considering filing a whistleblower claim? You will require the help of an experienced whistleblower attorney to decide whether the conduct you have observed constitutes a violation of the False Claims Act. Evidence gathering, dealing with the federal government’s attorneys, important deadlines, statutes of limitations, and filing requirements make your representation both complex and time-sensitive.
Mississippi Whistleblower Attorney Jonathan Barrett is available now at (800) 707-9577
Having expert legal advice by your side can mean the difference between receiving your share of a whistleblower judgment and losing your career and livelihood. Call us today.
