Today, the U.S. Securities and Exchange Commission (SEC) announced two whistleblower awards of over $31 million to whistleblowers that assisted the agency in investigating securities law violations. The whistleblower whose original information triggered the payment of almost $27 million in rewards was represented by the SEC whistleblower law firm Kohn, Kohn & Colapinto.
The anonymous whistleblower’s attorney made the following statement regarding the SEC’s Award:
“We congratulate our client for his or her courage, perseverance, and determination in holding fraudsters accountable,” said Stephen M. Kohn, the anonymous whistleblower’s attorney.
In its release, the SEC acknowledged that the anonymous whistleblower’s “information and cooperation” “resulted in the return of millions of dollars to harmed investors.”
Whistleblower Attorney Stephen Kohn further stated: “These awards further demonstrate that the Dodd-Frank Act whistleblower laws covering securities frauds and foreign bribery deter crime, put fraudsters in jail, help recover billions for investors, and protect the integrity of the markets.
“Congress needs to protect the Dodd-Frank Act from corporate attacks, and to expand similar protections into areas such as climate-related violations, social media accountability, and anti-trust.”
“The confidentiality and anonymity provisions of the DFA make it possible for high-level executives and others to report fraud without risking their careers and livelihoods.”
“Unfortunately, we are unable to provide any information related to the identity of the client or the company(ies) he or she reported to the SEC. But we can confirm that that innocent investors saved millions of dollars based on the whistleblower’s courageous actions.”
SEC whistleblowers with original information of securities frauds can report SEC violations using the Form TCR (Tip, Referral, Complaint). If the SEC sanctions any guilty parties and the penalties exceed $1 million, the whistleblower may be eligible for an award ranging between 10-30% of the monies collected from successful enforcement actions.
Since the SEC paid its first reward in 2012, the whistleblower program has awarded over $873 million to whistleblowers, held innumerable fraudsters accountable, recovered billions in sanctions, and saved investors countless billions.