A December 5, 2017, award by the Securities and Exchange Commission (SEC) totaling $4.1 million dollars to a single whistleblower highlights 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.
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 million 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.
Here is the exact language from the December SEC press release:
“The Securities and Exchange Commission today announced an award of more than $4.1 million to a former company insider who alerted the agency to a widespread, multi-year securities law violation and continued to provide important information and assistance throughout the SEC’s investigation. The whistleblower is the third awarded by the SEC in the past week.
Company insiders often have valuable information that can help the SEC halt an ongoing securities law violation and better protect investors,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “The breadth of the SEC’s whistleblower program is demonstrated by this case, where the whistleblower, a foreign national working outside of the United States, affirmatively stepped forward to shine a light on the wrongdoing.”
The SEC’s whistleblower program has now awarded more than $179 million to 50 whistleblowers since issuing its first award in 2012. All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards.
Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action. Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million.
By law, the SEC protects the confidentiality of whistleblowers and does not disclose information that might directly or indirectly reveal a whistleblower’s identity.
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.
