Authored by Allan Siegel
On Tuesday, October 1, 2013 regulators from the Securities and Exchange
Commission (SEC) announced that the SEC had awarded a $14 million dollar
cash reward to a whistleblower involved in assisting an investigation
that recovered "substantial" investor funds. The details of
the case and the whistleblower were not identified by the SEC.
The award is the largest ever payout from the Securities and Exchange Commission
since the new whistleblower program took effect in 2010 as part of the
Dodd-Frank Wall Street reform law. The reform helped introduce a number
of consumer protections after the country's financial crisis. Until
now, the largest amount paid by the SEC for a single whistleblower claim
totaled only $125,000. According to officials from the SEC, the whistleblower
will remain anonymous, as confidentiality and protection are incentivized
elements of the whistleblower program.
Financial incentives are also meant to encourage whistleblowers to step
forward with important information involving cases worth more than $1
million. The program clarifies that the information must be high-quality
and original. Awards can range from 10 to 30 percent of the money recovered
in a case, says one SEC regulator. This suggests that this particular
case could have involved at least $140 million in investor funds.
At Chaikin, Sherman, Cammarata & Siegel, P.C., our legal team provides
experienced assistance to individuals who wish to step forward and supply
information about fraud or injustices. We offer our full support and our
representation as we guide clients through the
whistleblower claim process and toward a recovery of cash awards. If you would like more information
about pursuing a claim or if you wish to discuss the potential merits
your case during a free, confidential case evaluation, contact a Northern
Virginia whistleblower attorney from our firm.