SEC Makes First Whistleblower Awards of 2014

The Securities and Exchange Commission (SEC) announced on June 3, 2013, that it had awarded more than $875,000 to be split between two whistleblowers.

Through the SEC whistleblower program, whistleblowers with original information regarding violations of federal securities can receive an award if the Government recovers over $1 million as a result of the whistleblower’s information.  The award can range from 10% to 30% of the Government’s recovery.

The SEC, which must protect the confidentiality of whistleblowers, stated only that “[these whistleblowers provided original information and assistance that enabled us to investigate and bring a successful enforcement action in a complex area of the securities market.”  According to the SEC order determining the award amount, the individuals received the maximum award of 30%.

Back in October, the SEC awarded a whistleblower over $14 million.

Since the SEC whistleblower program was enacted in 2011, the SEC has issued awards to a total of eight whistleblowers.

The SEC Press Release and Award Order can be found here:

http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370541980219

http://www.sec.gov/rules/other/2014/34-72301.pdf

 

For a free consultation about a potential SEC whistleblower case, please contact the Rabon Law Firm.

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