Three recent whistleblower awards in one week—one announced on December 5, 2017, and two on November 30, 2017—totaled over $20 million. The three whistleblowers helped the Securities and Exchange Commission (SEC) recover undisclosed millions from alleged wrongdoers in the financial world.
The November 30 Awards
Two whistleblowers provided the SEC with information which was critical to bringing a single successful enforcement action. One of the whistleblowers told the SEC about specific misconduct that focused their investigation and became crucial to the enforcement action. The other whistleblower supplied additional substantial information and also provided continuing cooperation to SEC enforcement staff. Doing so saved the agency significant amounts of time and resources.
The value of whistleblowers and the risks they take was underlined by Jane Norberg, Chief of the SEC’s Office of the Whistleblower, who commented, “Whistleblowers have played a crucial role in the progression of many investigations and the success of enforcement actions since the inception of the whistleblower program.”
Each whistleblower was awarded over $8 million.
The December 5 Award
A former company insider was awarded over $4.1 million because they informed the SEC about an extensive multi-year securities law violation. They also supplied vital information and assistance during the course of the SEC’s investigation.
The whistleblower’s award was reduced somewhat because the SEC determined there had been excessive delay in reporting the wrongdoing. However, the reduction was limited for two reasons. First, the SEC Whistleblower program had not yet been established when the wrongdoing began, thus justifying some of the delay in reporting. Second, the whistleblower was a foreign national working outside the U.S., meaning they could not bring a retaliation claim for an additional award.
The identities of all three whistleblowers are confidential, as required by law.
Over $1 Billion Recovered
The SEC has now recovered more than $1 billion in financial remedies from wrongdoers and alleged wrongdoers since 2012. Additionally, over $179 million has been awarded to 50 whistleblowers. No SEC whistleblower award payments are ever taken from money that was withheld or appropriated from investors who suffered harm. Instead, payments come from a special fund established by Congress and are financed by the monetary sanctions that the securities law violators must pay.
A whistleblower may receive an award if they voluntarily give the SEC credible, timely, and original information that also results in a successful enforcement action. Awards range from 10 percent to 30 percent of the monetary sanctions collected, as long as the amount is more than $1 million.
Making a difference.
If you think you have the facts needed to bring a whistleblower case, the experienced whistleblower attorneys at the Louthian Law Firm can review your case and help you file the appropriate disclosure statement. Under some circumstances, the government will intervene, or join in your lawsuit.
Your chances of succeeding are greater if your whistleblower claim is substantive, clear, and to the point. Because of this, meeting with a qualified whistleblower attorney can increase your chances of winning. The Louthian Law Firm can help you form your claim so that the government will be more inclined to intervene in your case; government intervention can sometimes increase the chances of recovering reward money. Even if the government decides not to intervene, it could still be a good idea to pursue your case without government involvement. Our strong support system can assist you through every step of the process.
For a free, confidential evaluation of your case, call the Louthian Law Firm today at 1-803-454-1200 or, if you prefer, you can fill out our online contact form.