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LAWSUITS NEWS & LEGAL INFORMATION

SEC Whistleblower Program Awards $50K to Anonymous Whistleblower


This is a settlement for the Whistleblower lawsuit.

Washington, DC: The Securities and Exchange Commission (SEC) has announced that it had granted the first whistleblower fraud award under its new program to a witness who helped stop a multi-million dollar fraud. The unidentified whistleblower will receive nearly $50,000. The award represents 30 percent of the amount collected by the SEC so far, which is the maximum percentage allowable by law.

The whistleblower' assistance lead to a court ordering more than $1 million in sanctions, of which approximately $150,000 has been collected thus far. The SEC stated that the whistleblower could receive additional payouts as the securities cases progresses.

The 2010 Dodd-Frank Act authorized the whistleblower program to reward individuals who offer high-quality original information that leads to an SEC enforcement action in which more than $1 million in sanctions is ordered.

In the SEC Whistleblower Program' first year, 2,870 tips, or about eight a day, were reported as of August 12th. The Director of the SEC' whistleblower office, Sean McKessy, stated: "We are getting very, very high-quality information form whistleblowers."

SEC Whistleblower awards can range from 10 percent to 30 percent of the money collected. The Dodd-Frank Act includes enhanced anti-retaliation employment protections for whistleblowers and provisions to protect their identity.

The SEC Whistleblower Program allows a whistleblower to report violations or potential violations to the SEC while remaining anonymous if the whistleblower submits their information through an attorney.

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Published on Sep-5-12


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