The Securities and Exchange Commission paid out $3 million to a whistleblower who helped the commission crack a complex fraud case. The whistleblower, a company insider, received the third-highest award given by the SEC whistleblower program thus far.
The whistleblower’s tip led to related actions, and gave very detailed information on the fraudulent scheme. Without this information, it would have otherwise been extremely difficult for investigators to detect the fraud, say San Francisco whistleblower lawyers.
“Insiders may hold the key to helping our investigators unlock intricate fraudulent schemes,” said Andrew Ceresney, Director of the SEC’s Division of Enforcement. “By providing significant financial incentives for people to come forward, the SEC’s whistleblower program continues to be profoundly effective in helping us protect investors and hold wrongdoers accountable.”
Whistleblowers can be eligible for awards totaling 10-30 percent of money collected when financial sanctions exceed $1 million. According to San Francisco whistleblower lawyers , whistleblowers must provide unique and useful information that leads to a successful enforcement action in order to be eligible to receive an award. The SEC has paid over $50 million to 18 whistleblowers since the program’s inception in 2011, with the payments coming out of an investor protection fund established by Congress and financed through monetary sanctions paid to the SEC by securities law violators.
Evans Law Firm, Inc. handles whistleblower and qui tam/False Claims Act cases, including SEC whistleblower and IRS whistleblower lawsuits. If you have a potential whistleblower claim, please contact Evans Law Firm, Inc. at 415-441-8669 or via email at firstname.lastname@example.org.