SEC Awards $2.2M To Whistleblower Who Initially Tipped Information to Another Federal Agency

Posted on April 9th, 2018 at 4:43 PM
SEC Awards $2.2M To Whistleblower Who Initially Tipped Information to Another Federal Agency

From the Desk of Jim Eccleston at Eccleston Law LLC:

The SEC has announced that it has awarded $2.2 million to a whistleblower whose initial tip to another federal agency led to SEC enforcement action.

This award is significant because in most cases whistleblowers are only eligible for awards under Dodd-Frank if they initially report their securities-related complaints to the SEC, rather than to another entity. However, under the safe harbor rule of the 2010 Dodd-Frank Act, whistleblowers who first report a complaint to another federal agency can still be eligible for an SEC award if they take the same complaint to the SEC within 120 days of the initial report. Moreover, the safe-harbor rule still can apply even if the SEC has already opened up its own internal investigation into that particular securities-related complaint.  

With regard to the $2.2 million award whistblower complaint, the report was made voluntarily, but confidentiality, by a “former company insider” to another federal agency covered under Dodd-Frank.

The SEC’s whistleblower program has been an important tool since its inception in 2011. The award distributions are made out of an investor protection fund established by Congress. The standard to obtain an award requires that the whistleblower’s information must be unique, useful and leads to a successful enforcement action. 

Eccleston Law, LLC helps individuals file and document their SEC whistleblower claims while maintaining confidentiality. Please contact us for further information.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

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Thank you for your professional assistance with this matter. You are very good at what you do.

John T.


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