SEC Awards $50 Million to Two Whistleblowers
On March 26th, 2019, the Securities and Exchange Commission (SEC) announced two new whistleblower awards, worth $50 million in total. One of the two whistleblowers was issued an award of $37 million, which is the third largest whistleblower award in the history of the program. Thus far, the SEC has approved 61 whistleblower awards, worth a combined $376 million. Here, our Miami investment fraud lawyers provide an overview of the two most recent awards and we explain that securities industry whistleblowers have the right to make fully confidential disclosures.
SEC Whistleblower Award #1: $13 Million
According to the SEC order, a whistleblower voluntarily came forward and provided information that led to enforcement action under federal securities law. The SEC notes that this whistleblower met once with federal investigators in order to answer questions and to provide some relevant information. This award was granted on the lower end of the permitted range — which is between 10 percent to 30 percent of the value of the enforcement action — because the SEC determined that the whistleblower unreasonably delayed taking action. As a result, additional investors were impacted by the underlying securities fraud scheme.
SEC Whistleblower Award #2: $37 Million
According to the SEC order, a second whistleblower also provided critically important details that helped to allow the agency to take enforcement action in this case. The SEC states that the second whistleblower met twice with investigators and that they provided high-quality information and reliable documentation that was critical to resolving the case. In fact, the SEC noted the documents provided by the second whistleblower amounted to a “smoking gun” — indisputable evidence that helped to show the extent of the securities fraud that occurred. As a result, the second whistleblower was granted a higher level of compensation.
SEC Whistleblowers are Entitled to Strict Confidentiality
Under federal regulations, securities industry insiders have the right to make fully confidential disclosures to the Securities and Exchange Commission. By working with a Miami SEC whistleblower lawyer, you can submit important information to the agency without exposing your identity. Federal officials will only learn of who you are if you are granted a whistleblower award. Even then, your identity and the important details surrounding your case will never be made available to the public. Even when receiving Freedom of Information Act (FOIA) requests, the SEC is legally obligated to conceal information that could be used to identify the whistleblower.
Get Help From Our Skilled Miami Investment Fraud Lawyers Today
At Carlson & Associates, P.A., our dedicated Miami securities industry whistleblower attorneys are strong, experienced advocates for our clients. If you are considering making a protected disclosure to the SEC or to any other securities industry regulator, we are available to offer guidance. Remember, you can privately disclose information to the SEC. Please contact our law firm to set up your confidential consultation. With an office in Miami, we are well-positioned to represent clients throughout South Florida.
Resources:
sec.gov/news/press-release/2019-42
sec.gov/news/press-release/2019-42
sec.gov/rules/other/2019/34-85412.pdf
https://www.carlson-law.net/miami-broker-suspended-by-finra-for-nine-months-failure-to-supervise/
