Thursday, August 13, 2015

Another Successful Whistleblower Claim - $3 Million to Whistleblower

The SEC has paid another whistleblower, this time more than $3 million. The payment was made to a company insider whose information helped the SEC crack a complex fraud.

According to the SEC, the whistleblower’s specific and detailed information comprehensively laid out the fraudulent scheme which otherwise would have been very difficult for investigators to detect. The whistleblower’s initial tip also led to related actions that increased the whistleblower’s award.
“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 who provide the SEC with unique and useful information that contributes to a successful enforcement action are eligible for awards that can range from 10 percent to 30 percent of the money collected when financial sanctions exceed $1 million.  By law, the SEC protects the confidentiality of whistleblowers and does not disclose information that might directly or indirectly reveal a whistleblower’s identity.

Our firm represents whistleblowers and potential whistleblowers, guiding them through the process, to help insure that they are properly classified and paid, and their identities protected. Call our office at 212-509-6544 for a free consultation if you believe you may have a whistleblower claim.

Since its inception in 2011, the SEC’s whistleblower program has paid more than $50 million to 18 whistleblowers, including a more than $30 million award in 2014 and a more than $14 million award in 2013.
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