SEC Awards More Than $4.5 Million to Whistleblower

Posted on May 28th, 2019 at 4:05 PM
SEC Awards More Than $4.5 Million to Whistleblower

From the Desk of Jim Eccleston at Eccleston Law LLC:

On May 24, 2019, the Securities and Exchange Commission (SEC) announced payment of more than $4.5 million to a whistleblower who sent an anonymous tip to the company alleging significant wrongdoing and then submitted the same information to the SEC. 

According to the SEC Press Release 2019-76, the whistleblower sent an anonymous tip to the company alleging significant wrongdoing and submitted the same information to the SEC within 120 days of reporting it to the company. This information induced the company to review the whistleblower’s allegations of misconduct and led the company to report the allegations to the SEC. As a result of the self-report by the company, the SEC opened its own investigation into the alleged misconduct. Eventually, when the company completed its internal investigation, the results were reported to the SEC. 

The SEC noted that this is the first time a claimant is being awarded under this provision of the whistleblower rules designed to incentivize internal reporting by whistleblowers who also report to the SEC within 120 days.

Since issuing its first whistleblower award in 2012, the SEC has awarded approximately $381 million to 62 individuals. All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators.

Eccleston Law LLC assists whistleblowers nationwide to investigate, prepare and file claims on a confidential basis.

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

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, whisteblower, sec, anonymous tip,

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