The Securities and Exchange Commission (SEC) has awarded over $30 million to a whistleblower, the largest ever award for a whistleblower’s information which led to a successful SEC enforcement action. The SEC program, in place since 2011, is meant to motivate tipsters from all over the world to come forward with credible information about violations of U.S. securities laws.
The whistleblower in this case, from a foreign country, brought forward information about an ongoing fraud. According to the SEC, the award of over $30 million could have been even larger had the tipster come forward sooner. The award was reduced due to the whistleblower’s delay in reporting the misconduct. This award is more than double the previous high for an SEC award of $14 million, which was awarded to a whistleblower in October 2013.
Under the SEC’s whistleblower program, tipsters are encouraged to come forward with credible, quality, original information about violations of U.S. securities laws that lead to a successful enforcement action of more than $1 million. The whistleblower awards can range from 10-30% of the money collected in a case. Most importantly, the whistleblower’s identity and confidentiality are strictly protected, so that tipsters can safely come forward.
According to Andrew Ceresney, Director of the SEC’s Division of Enforcement, “This record-breaking award sends a strong message about our commitment to whistleblowers and the value they bring to law enforcement.”
Robert Wayne Pearce, a former SEC Enforcement Attorney, has litigated SEC actions for over , including, but not limited to, insider trading, stock market manipulation, and other alleged violations of the Federal securities laws. If you believe that you have credible information about fraudulent violations of Federal securities laws, call Mr. Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation.
This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over , Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues, including several whistleblower cases. The lawyers at our firm are devoted to representing investors, whistleblowers, and financial industry professionals throughout the United States and internationally! Please visit our website, www.secatty.com, call (800) 732-2889, or email Mr. Pearce at firstname.lastname@example.org for answers to any of your questions about this article and/or any related matter.