RULE 3
Don’t Leave Money on the Table
Introduction
Assisting the government or exposing a fraudster could make you eligible for a substantial reward, which depends on your cooperation, involvement in the investigation, and other factors.
The integration of reward provisions into whistleblower laws has led to a significant increase in tips and successful cases. Empowering and protecting whistleblowers ensures their safety, while offering rewards may encourage those with compelling evidence to step forward. Additional benefits may include attorney’s fees, damages, reinstatement and backpay.
This chapter covers the essentials for qualifying for a reward, the factors determining the award percentage, the agency’s perspective on financial compensation, and the research supporting the effectiveness of reward laws. The author, Stephen Kohn, has experience winning some of the largest whistleblower rewards in history for his clients —including several over $100 million.
Practice Tips
Rules 16 – 25 cover the specific laws and procedures governing all major reward laws.
The criteria for judging the amount of an award is located at 17 C.F.R. § 240.21F-6 (SEC) and 17 C.F.R. § 165.9 (CFTC).
Resources
Rule 1 and the Conclusion include numerous citations to the effectiveness of whistleblower reward laws.
Rules 16 – 25 detail how the major reward laws work, and the procedures necessary to quality for a reward.
Checklist 1, found in Rules for Whistleblowers, also lists the major reward laws.
Alexander Dyck, Adair Morse, and Luigi Zingales, “Who Blows the Whistle on Corporate Fraud?” University of Chicago Booth School of Business Working Paper No 08-22 (2009).
Frequently Asked Questions
Related Rules
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