Have a Claim?

Click here for a confidential contact or call:

1-212-350-2774

SEC Enforcement Actions

The Securities and Exchange Commission (SEC) is the United States agency with primary responsibility for enforcing federal securities laws. Whistleblowers with knowledge of violations of the federal securities laws can submit a claim to the SEC under the SEC Whistleblower Reward Program, and may be eligible to receive  monetary rewards and protection against retaliation by employers.

Below are summaries of recent SEC settlements or successful prosecutions. If you believe you have information about fraud which could give  rise to an SEC enforcement action and claim under the SEC Whistleblower Reward Program, please contact us to speak with one of our experienced whistleblower attorneys.

July 13, 2021

A subsidiary of Teachers Insurance and Annuity Association of America (TIAA) has agreed to pay $97 million in restitution and make significant reforms to settle charges for making misleading statements and failing to disclose conflicts of interests to tens of thousands of customers.  Between 2012 and 2018, advisors with TIAA-CREF Individual & Institutional Services LLC (TC Services) pressured customers—many of them teachers and public sector employees—to move their investments from low-cost employer-sponsored retirement plans to higher-cost individually-managed accounts, which generated hundreds of millions of dollars in fees for TIAA.  NY AG; SEC

July 2, 2021

Roger Nils-Jonas Karlsson of Sweden has been sentenced to 15 years in prison and ordered to forfeit more than $16 million, including several properties and a resort in Thailand, in one of the largest cryptocurrency Ponzi schemes ever prosecuted in the United States.  Starting in 2011 until his arrest in Thailand in 2019, Karlsson induced thousands of investors from around the country and over 45 countries around the world to use cryptocurrency to purchase shares in an entity he called Eastern Metal Securities, by falsely claiming that it was run by award-winning economists and had zero risk of loss.  He then misappropriated at least $1.5 million to fund a lavish lifestyle for himself.  USAO NDCA; DOJ; SEC

June 24, 2021

A whistleblower whose information and ongoing assistance led to multiple SEC enforcement actions has been awarded more than $1 million.  According to the agency, the whistleblower played a critical role in the enforcement actions by prompting the investigation and saving the agency significant time and resources.  SEC

June 21, 2021

The SEC has issued awards totaling nearly $5.3 million to whistleblowers whose information caused the SEC to launch investigations that ultimately resulted in successful enforcement actions.  In the first award, a whistleblower received nearly $4 million for extraordinary assistance, including providing documents, identifying witnesses, and participating in hours of interviews.  In the second award, three whistleblowers received about $1.3 million for providing ongoing assistance that conserved agency time and resources.  SEC

June 15, 2021

Real estate settlement services company First American Financial Corporation will pay a penalty of $487,616 to resolve allegations that the publicly-traded company released incomplete information about a cybersecurity vulnerability in its document sharing platform that exposed over 800 million document images dating back to 2003, including images containing sensitive personal data such as social security numbers and financial information. The SEC charged that First American had deficient disclosure controls that left senior management unaware of the company's earlier discovery of the vulnerability and its attempts to remediate it.  SEC

June 14, 2021

The SEC has awarded approximately $3 million to two whistleblowers whose separate tips led to a successful enforcement action.  According to the press release, the first whistleblower’s early tip helped agency staff develop its case and focus its resources, while the second whistleblower helped uncover misappropriated funds and fraudulent transfers.  SEC

June 2, 2021

The SEC awarded $23 million to two individuals who voluntarily provided information as whistleblowers that led to recoveries by the SEC and another federal agency in related enforcement actions. Information provided by the first whistleblower, who received approximately $13 million, initiated the investigations.  The second whistleblower, who waited several years before coming forward, provided additional information that substantially contributed, and was awarded approximately $10 million.  Both provided ongoing assistance to the Commission and the other agency, providing documents, participating in interviews, and identifying key individuals and systems involved in the investigations.  SEC

May 28, 2021

Eric Pulier, who previously served as an executive at ServiceMesh, Inc., which later merged with Computer Sciences Corporation (CSC), entered into a consent judgment for $4.8 million in disgorgement, civil penalties, and interest.  The judgment resolved an SEC action alleging that Pulier paid more than $2 million in bribes to executives at the Commonwealth Bank of Australia to secure business for CSC.  Securing the Australia business entitled ServiceMesh to a $98 million earn-out payment from the CSC acquisition, and Pulier was personally entitled to $30 million of that earn-out.  SEC

May 27, 2021

An anonymous individual received and SEC whistleblower award of $4.2 million.  According to the SEC, the individual voluntarily provided detailed, original information that caused the Commission to open an investigation that led to a successful enforcement action.  During the investigation, the individual met with investigative staff on multiple occasions, identified key players, and provided additional helpful information and documents.  A second claimant was denied an award; Commission staff stated that they had not communicated with or used any information provided by that claimant.  SEC
1 2 3 4 88

Learn about Whistleblower Rewards Programs

Newsletter

Subscribe to receive email updates from the Constantine Cannon blogs

Sign up for: