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May 2, 2014 by |

First SEC Whistleblower Will Receive Another Payment

ATTORNEY NEWSLETTER

The Securities and Exchange Commission announced that it will make another payment to the first whistleblower that got a reward.  The agency made its first reward payment to a whistleblower in 2012.  One of the provisions contained in the 2010 Dodd-Frank legislation is designed to reward whistleblowers for coming forward and reporting fraudulent activity against the government.  Since the legislation has gone into effect there has been an increase in the number of whistleblower tips.  California whistleblower and securities attorneys are glad that the public is coming forward with information about fraud.  

 The whistleblower who received the first reward from the Securities and Exchange Commission chose to remain anonymous.  That person may get more money from the Securities and Exchange Commission in the future.  The language of the Dodd-Frank legislation that established the whistleblower program is the reason for the new payout.  The  Securities and Exchange Commission’s program rewards whistleblowers who provide information to the agency that leads to enforcement actions between ten and thirty percent of the monetary sanctions from that action.  Under the Dodd- Frank program, whistleblower rewards are connected to the amount the agency recovers.  There are times that the amount of money recovered is less than what is ordered.  California whistleblower and securities attorneys are glad to see that the government is recovering money.

 The first whistleblower award was for thirty percent of sanctions in connection with an undisclosed multi-million dollar fraud.  When the reward was announced, the court had ordered more than $1 million in penalties.  However, only $150,000 of that amount was collected by the agency.  The whistleblower received a payment of almost $50,000.  California whistleblower and securities attorneys are glad to see that whistleblowers are being compensated.

 Recently, the Securities and Exchange Commission announced that they would pay an additional $150,000 to the whistleblower.  The agency has collected more money in the case and the whistleblower will be receiving a portion of the newly recovered funds.  The amount paid to the whistleblower could be up to $100,000.  The Securities and Exchange Commission said that it is expecting to recoup more money in the case because some defendants are making payments on a schedule.  Evans Law Firm, Inc. was not involved with this case, but will thoroughly investigate whistleblower claims.

 Evans Law Firm, Inc. handles whistleblower/false claims, consumer fraud class actions, insurance and banking fraud, consumer product liability, elder abuse, and personal injury cases.  If you think that you have witnessed or are the victim of financial fraud by an insurance company, bank or individual then, contact Evans Law Firm, Inc. at (415) 441-8669 for a free and confidential consultation, or email info@evanslaw.com.

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