Two recent awards from the Securities and Exchange Commission (SEC) totaling $16 million dollars in two whistleblower cases highlight the importance of whistleblowers to uncovering corporate corruption and the significant awards awaiting those willing to bring those behaviors to light. The SEC’s whistleblower program pays large awards to those who provide timely information resulting in a successful prosecution. A whistleblower may receive up to thirty percent of any sanction imposed on a corporation, and the sanctions are often in the millions of dollars.
If you are considering making an SEC whistleblower claim, you should understand the risks involved, including retaliation and loss of a career. Those risks are taken to achieve a significant reward, but the reward is not known until an investigation and successful prosecution. Accordingly, it is vital that you retain experienced whistleblower counsel to help you through this process so that the risks are mitigated and the reward is maximized. know that there is extremely high risk that your whistleblowing will anger your employer. That anger can translate into retaliation against you, which often results in a whistleblower losing his or her job. You should know that retaliation is prohibited under the False Claims Act, however, and can result in your reinstatement, as well as other penalties such as double back pay, fines, and attorney fees.
This past On November 30, 2017, the SEC announced two whistleblower awards of more than $8 million each for their help successfully prosecuting two SEC enforcement actions. In these decisions, the SEC highlighted the aspects required for any successful whistleblower claim. Specifically, the claimants filed timely and original information. In other words, the whistleblowers were the first to file and filed information that the SEC was unaware of.
Case One—this whistleblower provided original information to the SEC. Once the SEC’s investigation was underway, the whistleblower communicated with SEC numerous times throughout the investigation, providing significant information including identification of relevant documents and witnesses, saving the SEC substantial time and resources.
Claim Two—this whistleblower and their attorney also provided original information to the SEC through its online Tips, Complaints, and Referrals (TCR) system. The whistleblower and their attorney continued to provide supplemental information over the next year while the SEC investigated the case. Because of this whistleblower’s information gathering, they aided the SEC in “more fully and quickly understand[ing] the misconduct and to assess the legal consequences.”
The SEC could not do its work without whistleblowers. The Chief of the SEC’s Office of the Whistleblower Jane Norberg stated that the work of whistleblowers is evident in the “more than $671 in disgorgement of ill-gotten gains, much of which has been or is scheduled to be returned to harmed investors,” and recovered “based on actionable information from whistleblowers.” Overall, enforcement actions involving whistleblower awards have helped the SEC recover more than $1 billion in financial remedies.
What Should You Do if You are Considering a Whistleblower Claim?
Are you considering filing an SEC whistleblower case? You will require the help of an experienced whistleblower attorney to decide whether the conduct you have observed constitutes an SEC violation. Evidence gathering, dealing with the federal government’s attorneys, important deadlines, and filing requirements make your representation both complex and time-sensitive.
Call Barrett Law now at (601) 790-1505 if you think you may be an SEC whistleblower.
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.
