About Geoff Schweller
Geoff Schweller is the Communications Director for Kohn, Kohn & Colapinto (KKC). Geoff graduated from Hamilton College in 2019 with a bachelor’s degree in Sociology. He is also the Assistant News Editor for Whistleblower Network News.
From the Whistleblower and Qui Tam Blog
SEC Whistleblower Receives $500,000 Award for Initiating Investigation
On September 13, the U.S. Securities Exchange and Commission (SEC) issued a $500,000 whistleblower award to an individual who voluntarily provided original information that caused the SEC to initiate an investigation, resulting in an enforcement action. The SEC Whistleblower Program offers monetary awards to whistleblowers whose information leads to successful enforcement actions. Qualified whistleblowers are entitled to awards for 10-30% of the funds collected by the government. In determining the exact percentage to award a whistleblower, the SEC weighs a number of factors including the significance of the information, the degree of further assistance provided by the whistleblower, and the timeliness of the disclosure. In this case, the SEC noted that the whistleblower’s information “was significant, as it resulted in Commission staff initiating an investigation into misconduct” and that the whistleblower “submitted information and documents to Commission staff, participated in interviews with Commission staff, and helped Commission staff identify key ...
SEC Approves Rule Changes to Better Incentivize Whistleblowers
On August 26, the U.S. Securities and Exchange Commission (SEC) adopted two amendments to the rules of its highly successful whistleblower program. The amendments, which were widely supported by whistleblower advocates, allow the agency to better award whistleblowers who voluntarily provide the agency with original information that leads to successful enforcement actions. “The SEC hit a home run. The investors, the taxpayers, and the public are the biggest winners today,” said whistleblower lawyer Stephen M. Kohn, a partner in the firm of Kohn, Kohn and Colapinto. The first amendment alters a 2020 rule change which added language stating that the SEC has the discretion to consider the dollar amount of an award making an award determination. The new amendment clarifies that the agency only has this authority in instances where it is increasing the amount of an award, not in instances where it is decreasing an award size. “The Commission ...
DC Circuit Decision Upholds Whistleblower Confidentiality to Protect IRS Whistleblowers from Retaliatory FOIAs
On July 19, the United States Court of Appeals for the District of Columbia Circuit issued a ruling in Montgomery v. Internal Revenue Serv., a case concerning the Internal Revenue Service’s (IRS) handling of Freedom of Information Act (FOIA) requests for information about whistleblower disclosures. The Court upheld the right of the IRS to withhold any information that might reveal the existence of a whistleblower due to the role IRS whistleblowers play as confidential sources to help enforce tax laws. Additionally, the Court noted that whistleblowers can be subject to retaliation from “revenge-seeking” FOIA requesters who have been audited by the IRS. In the early 2000s, husband and wife Thomas and Beth Montgomery allegedly undertook a fraudulent tax scheme using sham partnerships as tax shelters to artificially report business losses of over $1 billion on individual tax returns. The IRS eventually discovered the scheme, disallowed the reported losses in adjustments, and ...
Whistleblower Law Expert Details Urgent Need for Stronger Anti-Money Laundering Laws
In a new op-ed for The Hill, leading whistleblower attorney Stephen M. Kohn of Kohn, Kohn & Colapinto outlines the urgent need for whistleblower protections targeting Russian money laundering and sanctions busting. Kohn reviews legislation pending in both the House and the Senate which “give the Department of Treasury the ability to successfully track down the hundreds of billions of dollars that passed through American banks.” The money laundering and sanctions legislation which Kohn details are H.R.7195 and S.3316. The bipartisan bills offer reforms to the current anti-money laundering whistleblower program and establish protections for sanctions whistleblowers. “Why is the whistleblower legislation so badly needed?” Kohn writes. “First, there are no protections whatsoever for whistleblowers who report sanctions violations… Second, whether you are reporting money laundering or sanctions busting, the Department of Treasury lacks the ability to compensate you for your sacrifices or information, nor is there any requirement that any reward or compensation ever be ...
SEC Awards $16 Million to Two Whistleblowers
On August 9, the U.S. Securities and Exchange Commission (SEC) announced whistleblower awards totaling more than $16 million. The SEC granted the awards to two whistleblowers who separately provided original information which contributed to the success of the same enforcement action. "The information and assistance provided by these two whistleblowers in helping to identify complex wrongdoing demonstrates the importance of the whistleblower program to the SEC’s enforcement efforts," said Creola Kelly, Chief of the SEC’s Office of the Whistleblower. "These whistleblowers reported critical information that aided the SEC’s investigation and provided extensive, ongoing cooperation that helped stop the wrongdoing and protect the capital markets." Through the SEC Whistleblower Program, qualified whistleblowers, individuals who voluntarily provide the agency with original information that leads to a successful enforcement action, are entitled to monetary awards of 10-30% of the proceeds collected. In determining the exact percentage to award a whistleblower, the SEC weighs ...
SEC Awards $500,000 to Two Whistleblowers
On August 2, the U.S. Securities and Exchange Commission (SEC) awarded $500,000 to two whistleblowers. Both whistleblowers voluntarily provided the SEC with original information that led to a successful enforcement action. Through the SEC Whistleblower Program, qualified whistleblowers are entitled to awards of 10-30% of the funds recovered by the government in the relevant enforcement action. In addition to offering monetary awards, the SEC Whistleblower Program also offers anti-retaliation protections to whistleblowers. One such protection is confidentiality; thus, the SEC does not disclose any identifying information about award recipients. In determining the exact percentage to award a whistleblower, the SEC weighs a number of factors including timeliness of the disclosure, significance of the information, and culpability. According to the award order, in reaching its determination for the first whistleblower, the SEC “considered that [the whistleblower] provided information that served as important evidence of a fraud and supported the Commission’s findings ...