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.