SEC Reverses Course, Awards $800,000 to Whistleblower

Posted on October 16th, 2020 at 1:58 PM
SEC Reverses Course, Awards $800,000 to Whistleblower

From the Desk of Jim Eccleston at Eccleston Law LLC:

The U.S. Securities and Exchange Commission (“SEC”) issued an $800,000 whistleblower award. As reported by Law360, what is unusual about this award is that it comes after the SEC initially denied the award claim and then subsequently reversed course.

In its preliminary determination, the SEC denied a whistleblower’s claim for an award. This denial was then contested by the whistleblower. In its order, the SEC said that “for purposes of payment on the award in this matter, we have determined to treat a separate enforcement action . . . together with the above-referenced action, as a single covered action, as the proceedings arise out of the same nucleus of operative facts.” Usually, for a whistleblower to receive an award, the SEC’s enforcement case stemming from the whistleblower’s tip must result in monetary sanctions over $1,000,000. However, in this case, the SEC found it appropriate to combine the monetary sanctions of two separate actions when determining if the $1,000,000 threshold was met.

Individuals who believe they may have a whistleblower claim to submit to the SEC should contact the professionals at Eccleston Law to discuss their options.

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.

Tags: eccleston, sec, whistleblower, settelement

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I learned two important things working with Eccleston Law. First, I made a friend and ally with Jim and Steph for life. Secondly, and this is a crucial life lesson - if you need counsel, then seek out the very best. Jim was referred to me by a most trusted source. I've never had to hire an attorney for anything. Now, I know the value of hiring an important partner. Meticulous, thorough and detailed in preparation is the best way to describe Jim. Brilliant too, I might add. Bottom line, I would highly highly recommend Jim and Stephany for your legal needs. One of the best life decisions I've ever made.

Howard S.


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