SEC Awards Whistleblowers That Helped Spot Securities Fraud

The Securities and Exchange Commission (SEC) recently announced a whistleblower award to three people who jointly provided a tip about an undisclosed fraud targeting retail investors.  The whistleblowers themselves had been harmed by the fraud. The information that the whistleblowers provided to the SEC resulted in a successful enforcement action. The whistleblowers will receive a collective whistleblower award of over $260,000. 

The Chief of the SEC’s Office of the Whistleblower, Jane Norberg, stated: “Because of the whistleblowers’ information and assistance early in the investigation, the SEC had strong evidence about a fraudulent scheme operated by recidivist violators. This matter exemplifies the importance of the SEC’s whistleblower program to the agency’s enforcement efforts and commitment to protect investors.”

Since issuing its first whistleblower award in 2012, the SEC has awarded approximately $387 million to 70 people.  The SEC pays all whistleblower awards from an investor protection fund that is funded from fines that securities wrongdoers pay to the SEC.  

Whistleblowers may receive an award when they provide the SEC with original, timely, and credible information that results in a successful enforcement action. Whistleblower awards can range from 10 percent to 30 percent of collected fines.

The Dodd-Frank Act requires the SEC to protect the confidentiality and identities of whistleblowers.

Please contact one of our Business Trial Group attorneys at 800-816-1031 if you believe you have information of securities-related fraud that you believe the SEC may be interested in prosecuting. We regularly help tipsters navigate through the whistleblower process.  

The Business Trial Group at Morgan & Morgan will never charge hourly fees or expensive retainers. We are only paid if we successfully recover money for you.  

The Business Trial Group is part of the largest contingency law firm in the nation, with more than 700 lawyers and offices across the country.  We regularly battle against brokerage firms, investment advisory firms, and banks, and have helped investors recover tens of millions of dollars of investment losses.