Nearly $10 Million Awarded to SEC Whistleblower

On July 12th, 2023, the Securities and Exchange Commission (SEC) officially confirmed a whistleblower award of more than $9 million to an anonymous person who provided “significant and detailed information” that helped federal regulators take enforcement action in a securities fraud case. In this article, our Florida securities law whistleblower lawyer provides a more detailed explanation of the whistleblower award issued by the SEC

Whistleblower Provider Initial Tip and Ongoing Support to Regulators 

According to the SEC, the whistleblower in this case initially reported these issues internally. After no action was taken, they then brought the matter to the attention of the SEC’s Enforcement Division. The SEC then opened an investigation. As successful enforcement action was taken by the agency, the SEC was able to return millions of dollars to investors. The recommendation for the award took into account factors, including:

• The importance of the information provided;
• The extent of the whistleblower’s assistance;
• The public interest in deterring violations through awards; and
• The whistleblower’s culpability and a reporting delay.

 The SEC has Discretion to Determine the Value of a Whistleblower Award (10 to 30 Percent) 

Federal law empowers the Securities and Exchange Commission (SEC) to determine the appropriate amount of a whistleblower award. Indeed, the agency holds the discretionary power to determine the value of a whistleblower award. The basis of the award will be the total value of enforcement action taken based on the information provided by the whistleblower. The SEC can award an amount ranging from 10 to 30 percent based on the specific circumstances.

The flexibility allows the SEC to adjust the award proportionally based on several factors including the relevance and impact of the information provided, the level of assistance given in the enforcement action, and the overall interest in deterring future violations. The mechanism promotes transparency and encourages individuals to disclose valuable information about misconduct, which in turn safeguards the integrity of the financial markets.

An Attorney Can Help You Make a Confidential Disclosure to the SEC 

Whistleblower disclosures are highly sensitive—especially in the securities industry. The SEC’s whistleblower program has very strong confidentiality protections. Retaining a whistleblower attorney can significantly aid in making a confidential disclosure to the SEC. Indeed, an SEC whistleblower lawyer in Florida can help you provide information to the SEC without disclosing your identity. You will only be required to share your identity with the SEC if the agency has decided to issue a financial award.

 Set Up a Confidential Case Review With a Miami SEC Whistleblower Attorney Today

At ​Carlson & Associates, P.A., we provide reliable legal representation to whistleblowers in the securities industry. If you are preparing to make a confidential disclosure to the Securities and Exchange Commission, we are prepared to protect your rights and put you in the best position to get a whistleblower award. Contact us today for a confidential, no obligation consultation. From our Miami legal office, we represent SEC whistleblowers all across South Florida.

Source:

sec.gov/news/press-release/2023-131