The Securities and Exchange Commission’s (SEC) first initiated its whistleblower program back in 2010. It gave two key features to persuade whistleblowers to come forth: (1) monetary rewards for vital information and (2) anonymity for protection. Four years later, the Securities and Exchange Commission made good on their word by awarding a $30,000,000.00 award to a whistleblower – an overseas whistleblower.
Awarding a whistleblower located within the United States is one thing, but awarding a whistleblower who lives outside the country sends a strong message to financial institutions – foreign whistleblowers are more than welcome to come forth with their information, not just those located within the United States. For foreign businesses, the Securities and Exchange Commission may operate under laws such as the Foreign Corrupt Practices Act, which measures damages based on the business generated, not on what was paid to the corrupt official. In light of this law, damages to the Securities and Exchange Commission can raise spectacularly high.
Take into consideration the $30 million award. Under the Dodd-Frank Act, whistleblower awards must be between 10% and 30% of what the Securities and Exchange Commission recovers. That means the defendant financial institution could have had to pay anywhere from $100 million to $300 million in damages. In light of these amounts, even the most lucrative of financial firms will be on edge.
Not just foreign financial institutions ought to be on guard, but domestic businesses as well. Without a doubt, the government is willing, ready, and able to listen to good whistleblower information – and pay a hefty amount for it.
Evans Law Firm, Inc. handles whistleblower and false claims (qui tam) lawsuits, whistleblower award claims, Securities and Exchange Commission and Internal Revenue Service (IRS) whistleblower cases, consumer class action fraud, banking fraud, insurance fraud, and other financial fraud cases. If you think you have a whistleblower claim or have been the victim of financial fraud, contact Evans Law Firm, Inc. for a free and confidential consultation at email@example.com or call 415-441-8669.