In early November 2020, the Securities and Exchange Commission (SEC) announced that it awarded two individual whistleblowers a total of $4.3 million.
In the first whistleblower case, the SEC paid over $3.6 million for the individual’s provision of critical information that alerted the SEC to fraudulent conduct taking place abroad. The SEC noted that the whistleblower provided “substantial and ongoing assistance” to SEC’s Enforcement Staff, which involved travel to a foreign county at the expense of the whistleblower in order to meet in person with the SEC, as well as submitting extensive documentation in support of the illegal securities conduct.
As to the other SEC whistleblower, the SEC awarded $750,000 for information provided regarding ongoing fraudulent activities. The whistleblower met in person with SEC Enforcement Staff, and laid out the mechanics and operations of the securities scheme.
Do you have a SEC Whistleblower Claim?
To qualify for a whistleblower monetary award, you must provide the SEC original, credible and timely information that results in a successful enforcement action in which over $1 million is recovered. In that scenario, an SEC whistleblower may receive between 10% and 30% of the total funds recovered, the exact percentage of which is determined in the SEC’s sole discretion.
From the inception of the SEC’s whistleblower program in 2010, the SEC has awarded over $719 million to more than a hundred individual whistleblowers. Notably, in October, 2020, the SEC paid out a $114 million award – the largest ever and approximately twice the prior largest bounty paid to date.
Blowing the whistle on stock fraud and other violations of the federal securities laws, such as Ponzi schemes, accounting fraud, market manipulation, hedge fund and mutual fund fraud asset valuation schemes, can not only financially benefit the SEC whistleblower, but can also protect the investing public and ensure those who are responsible for the fraud are held legally responsible.
Improve your chances of receiving a SEC whistleblower award by hiring an experienced SEC whistleblower lawyer
Most individuals who submit SEC whistleblower claims do not receive a financial payout. While you are not required to hire a lawyer to submit a claim, being represented by an experienced SEC whistleblower attorney may significantly improve your chances of obtaining a financial award and maximizing it. If you hire an SEC whistleblower attorney, you can remain anonymous, with limited exceptions, throughout the process.
Work with an experienced SEC Whistleblower Attorney
If you have knowledge of ongoing or historical securities fraud (particularly if you are an insider), and wish to explore the possibility of filing a SEC whistleblower claim, contact SEC whistleblower lawyer David Chase, a former SEC prosecutor, for a confidential, no-cost consultation. Mr. Chase may be contacted toll-free at: 800-760-0912, or email at david@davidchaselaw.com.
