SEC Whistleblower Program Summer Roundup - Nearing the Billion Dollar Mark
Posted 09/9/21
For the SEC Whistleblower Program, it was business as usual this summer. With total awards of more than $50 million to 25 whistleblowers, the agency moved ever closer to the billion dollar mark. Here is how it played out for the SEC program over the not so lazy days of summer:
The Federal Financial Supervisory Authority, otherwise known as BaFin, is Germany’s version of the U.S. Securities and Exchange Commission (SEC), a supervisory body working to ensure the functioning, stability and integrity of the German financial system. BaFin was created following a 2002 merger between Germany’s Federal Banking Supervisory Office (BAKred), the Federal Securities Supervisory Office (BAWe), and...
SEC Chairman Views Cryptocurrency Markets as the “Wild West” and Calls for More Investor Protection
Posted 08/13/21
During a recent speech discussing the intersection of national security with cryptocurrencies at the Aspen Security Forum, Gary Gensler, the new Chairman of the Securities and Exchange Commission (SEC), made clear the SEC will use its broad powers to continue protecting investors from the volatility associated with cryptocurrency markets which he characterized as the “Wild West.” He also urged Congress to grant...
Federal Court Confirms That Outsiders Can Be SEC Whistleblower Too
Posted 07/30/21
What does it mean to be a “whistleblower”? Often, people think of corporate or government employees with access to secret information that’s not visible from the outside. A classic example is Daniel Ellsberg. Working as a military analyst for the RAND Corporation, Ellsberg accessed and leaked an explosive Top Secret study of U.S. activities in the Vietnam War.
But the U.S. whistleblower award programs...
In Defense of Whistleblowers: Poppy Alexander Appears on Law & Disorder Podcast
Posted 07/13/21
Constantine Cannon whistleblower attorney Poppy Alexander was interviewed as a featured guest on the Law & Disorder podcast. In an interview with Heidi Boghosian, Poppy discussed the False Claims Act, including its rewards and protections for whistleblowers. The FCA allows private persons, known as relators, to bring what are called qui tam lawsuits on the government’s behalf, and claim a share of any recovery...
SEC Cracks Down Again on Companies Chilling Whistleblowers from Reporting Wrongdoing
Posted 07/2/21
A company’s restrictive compliance manual and training materials ran afoul of the Securities and Exchange Commission (SEC)’s Rule 21F-17(a), prohibiting actions restricting, impeding, or discouraging whistleblowers from directly reporting wrongdoing to the Commission. In its settlement against New York broker-dealer Guggenheim Securities, LLC (Guggenheim), the SEC not only censured Guggenheim but also hit it...
It has been less than two months since SEC Whistleblower Chief Jane Norberg left the agency for private practice. As we previously wrote, her five years running the agency's Whistleblower Program were groundbreaking in the number and amount of awards the SEC made and in the agency's efforts to champion the critical role whistleblowers play within the SEC enforcement regime.
As we also wrote at the time, the SEC...
Catch of the Week: SEC Cracks Down Again on Cybersecurity Disclosures
Posted 06/17/21
This week’s Catch of the Week goes to the Securities and Exchange Commission for its latest settlement involving cybersecurity risks. The SEC charged First American Financial Corporation, an insurance company listed on the New York Stock Exchange, with failing to adequately control for cybersecurity risks. According to the SEC’s Order, a journalist alerted First American that it had a major vulnerability in...
Whistleblowers Without Borders: International Whistleblowers are Increasingly Important Contributors of Tips to the SEC Whistleblower Reward Program
Posted 06/11/21
On March 4, 2021, the SEC announced an award of over $5 million to joint foreign whistleblowers whose tip, providing significant information about misconduct abroad, caused the opening of an investigation that resulted in a successful SEC enforcement action.
According to Jane Norberg, former Chief of the SEC’s Office of the Whistleblower, “The whistleblowers’ information alerted the staff to misconduct...
Catch of the Week: Second Conspirator Pleads Guilty in Jay Peak EB-5 Fraud Case
Posted 06/4/21
William Kelly pleaded guilty to two felony charges in connection with EB-5 securities fraud in the development of the Jay Peak Biomedical Research Park, also called the AnC Vermont project. Kelly, who served as the chief operating officer for the project, was a long-time advisor to project owner Ariel Quiros, who previously pleaded guilty to related charges. Co-defendant William Stenger, the project’s CEO, pleaded...