A whistleblower who provided non-public information to the Securities and Exchange Commission (SEC) has been awarded a $4 million reward.
The SEC’s order granting the whistleblower reward can be found by clicking here.
Consistent with its confidentiality obligations under the Dodd-Frank whistleblower provisions, the SEC did not disclose the whistleblower’s name or any information that might directly or indirectly reveal the whistleblower’s identity.
The SEC whistleblower program provides financial incentives and legal protections to individuals who provide solid information that helps uncover violations of the securities laws. To qualify, whistleblowers must provide the information voluntarily and it must lead to a successful enforcement action that results in at least $1 million in sanctions.
SEC whistleblower rewards range from 10 percent to 30 percent of the money collected. When deciding the amount of a whistleblower reward, the SEC considers the significance of the information provided, the level of assistance the whistleblower provided to the SEC, and whether the whistleblower reported the securities law violations promptly.
A whistleblower’s own involvement in the underlying violations is not an automatic disqualifying factor, but it may lead to a much lower reward.
The whistleblower must comply with strict procedures to qualify for a reward. Failure to follow the proper procedures can result in loss of status as a whistleblower.
If you have evidence of possible securities law violations, you should consult with an experienced whistleblower lawyer immediately to protect your rights. To schedule a free and confidential consultation, contact John Howley, Esq. at (212) 601-2728.