The Securities and Exchange Commission (SEC) has awarded more than $55 million to whistleblowers in the first nine months of the year. It has provided financial awards to 66 people since the program was implemented in 2011, with payouts totaling more than $1.3 billion, according to an SEC press release on Tuesday. Since the program’s inception in 2011, it has awarded more than $57 million to 37 whistleblowers from 16 states and the District of Columbia, covering companies in all 50 states and overseas. The largest award was $30 million and went to two whistleblowers, while several were less than $1 million.
The SEC recently awarded millions of dollars to whistleblowers who reported securities law violations. This is the latest in a series of awards that the SEC has given out, totaling over 1.3 billion dollars. The SEC relies on whistleblowers to help them identify and investigate potential securities law violations. Whistleblowers can receive an award if their information leads to a successful enforcement action by the SEC. The size of the award depends on several factors, including the significance of the information provided and whether the individual voluntarily provided the information.
An award might also be reduced or eliminated if the whistleblower was involved in the misconduct they are reporting. Awards are generally paid as a percentage of money collected from penalties, fines, or disgorgement resulting from an SEC enforcement action based on the whistleblower’s information. In this case, one whistleblower received about $4 million for providing important information about corporate malfeasance and fraud to federal authorities. Another received $5 million for reporting illegal conduct such as insider trading and financial statement fraud related to stock purchases.
What if I decide to blow the whistle on my company?
If you’re thinking about blowing the whistle on your company, you’re not alone. Every year, employees across the country speak up to expose fraud, waste, and abuse. Here’s what you need to know if you’re considering becoming a whistleblower.
- Do I have enough evidence?
- Will anyone believe me?
- What will happen when I go public?
- What does it mean to be a whistleblower?
How does a whistleblower lawyer help?
A whistleblower lawyer helps people who have information about securities law violations report those violations to the U.S. Securities and Exchange Commission (SEC). The SEC is a government agency that regulates the securities industry. It has an Office of the Whistleblower which was created in 2011 as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The office provides financial awards for whistleblowers who come forward with original information that leads to successful enforcement actions resulting in sanctions over $1 million, as well as other forms of rewards.
The SEC has awarded more than $750 million since January 2011. That includes recent awards totaling more than $6 million to three whistleblowers. In fiscal year 2018 alone, the SEC’s Office of the Whistleblower awarded more than $200 million in total settlements due to tips received from whistleblowers – nearly triple the previous record amount paid out during FY 2017. Since its inception, 569 individuals have been awarded more than $1 billion through these programs by a federal agency for reporting wrongdoing and assisting our law enforcement investigations – including five recipients who each collected more than $30 million under these provisions.
A whistleblower lawyer in Washington, DC at Eric Siegel Law can help you determine if you have a case, the best way to keep you safe, and will represent you to ensure you receive the payout you deserve; contact us today!