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SEC Whistleblower Reward Program

This archive displays posts tagged as relevant to the SEC Whistleblower Reward Program. You may also be interested in the following pages:

Page 1 of 12

Record-Breaking Year for the SEC Whistleblower Program: What the SEC Annual Report Tells Whistleblowers

Posted  11/16/18
In its 2018 Annual Report to Congress, the SEC Office of the Whistleblower described a “record-breaking year,” with a substantial increase in the number of tips received and the largest whistleblower awards to date.  While these numbers illustrate the benefits of the SEC Whistleblower Program, the SEC rightly says that it is “most proud” of the benefits the Whistleblower Program offers to investors, with over $1.7 billion in monetary sanctions...

September 24, 2018

The SEC announced that it awarded $4 million to an individual residing overseas who had submitted a tip to the SEC Whistleblower Program.  The individual's tip led to an investigation.  The whistleblower's name, the subject of the underlying investigation, and the nature of the wrongdoing were not reported by the SEC, which offers anonymity under its Whistleblower Program.  SEC

SEC Announces $4 Million Award to Overseas Whistleblower

Posted  09/24/18
We have said it before, and we will say it again:  the SEC Whistleblower Program offers monetary rewards to non-U.S. citizens.  Today's announcement from the SEC of a $4 million award to an unidentified "overseas whistleblower" demonstrates this.  According to the SEC, the anonymous whistleblower's tip caused the SEC to open an investigation.  The $4 million award "recognizes the continued, important assistance provided by the whistleblower throughout the course of...

SEC Reaffirms its Policy of Reduced Awards for Tardy Whistleblowers

Posted  09/20/18
Last Friday, the SEC announced an award of more than $1.5 million to a whistleblower who "provided the SEC with vital information and ongoing assistance that proved important to the overall success of an enforcement action." SEC Press Release. This brings to 58 the total number of awards under the SEC Whistleblower Program, amounting to $322 million in whistleblower recoveries. Of course, following the SEC's strict whistleblower confidentiality provisions, the SEC...

Catch of the Week — SEC Hands Two Whistleblowers $54 Million

Posted  09/7/18
SEC
The SEC announced late this week that it had issued two whistleblower rewards totaling $54 million. Of the total reward, one tipster received $39 million-the second-largest reward the SEC has ever granted-while a second received $15 million, the eighth-largest award yet granted. The SEC commended both whistleblowers for providing “critical information and continued assistance” that “helped the agency bring an important enforcement action.” Just what that enforcement action was, as...

DOJ Investigation of Pharma Companies for Alleged Iraqi Terrorism Funding – Did a Whistleblower Help?

Posted  08/17/18
Pharmaceutical companies AstraZeneca, Pfizer, Roche, and Johnson & Johnson were sued in the fall of 2017 by a group of military veterans and others who alleged that the companies paid bribes to win contracts with the Iraqi Ministry of Health – bribes which, according to the lawsuit, financed terrorism that damaged the plaintiffs.  As such, the plaintiffs alleged, the payments amounted to aiding and abetting violations of the Anti-Terrorism Act,...

What the Panama and Paradise Papers Tell Us

Posted  06/15/18
At this spring’s OffshoreAlert Conference in Miami, journalists involved in two of the biggest document leaks in history, the Panama and Paradise Papers, spoke on panels about secrecy jurisdictions and discussed the tax avoidance, corruption, and money-laundering they permit. Their fascinating presentations provided a chance to reflect on the magnitude of the information released to the public and on how far the world still has to go to encourage positive...

May 16, 2018

The SEC announced settled charges against broker-dealers Chardan Capital Markets LLC and Industrial and Commercial Bank of China Financial Services LLC (ICBCFS) for failing to report suspicious sales of billions of penny stock shares. Broker-dealers are required to file Suspicious Activity Reports (SARs) for transactions suspected to involve fraud or with no apparent lawful purpose. According to the SEC, from October 2013 to June 2014, Chardan, an introducing broker, liquidated more than 12.5 billion penny stock shares for seven of its customers and ICBCFS cleared the transactions. Chardan failed to file any SARs even though the transactions raised red flags, including similar trading patterns and sales in issuers who lacked revenues and products. The SEC found that ICBCFS similarly failed to file any SARs for the transactions despite ultimately prohibiting trading in penny stocks by some of the seven customers. The SEC’s orders found that Chardan and ICBCFS violated the Exchange Act and an SEC financial recordkeeping and reporting rule and that Chardan’s anti-money laundering (AML) officer, Jerard Basmagy, aided and abetted and caused the firm’s violations. The SEC also found that ICBCFS failed to produce documents promptly to SEC staff.  Without admitting or denying the SEC’s findings, the parties agreed to settlements requiring Chardan to pay a $1 million penalty, ICBCFS to pay $860,000, and Basmagy to pay $15,000.  Both firms consented to censures and, along with Basmagy, to cease and desist from similar violations in the future.  Basmagy also agreed to industry and penny stock bars for a minimum of three years. SEC

April 12, 2018

The SEC announced a whistleblower award of more than $2.1 million to a former company insider whose information led to multiple successful enforcement actions. The whistleblower’s information strongly supported the findings in the underlying actions and the whistleblower provided ongoing assistance to the staff during the investigation. “The SEC has issued nearly $90 million in whistleblower awards in the past month alone,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “As these awards demonstrate, we continue to receive high-quality information from whistleblowers, which we use to detect and prosecute securities violations and safeguard investors.” Since issuing its first award in 2012, the SEC has awarded more than $266 million to 55 individuals under the whistleblower program. In that time, almost $1.5 billion in monetary sanctions have been ordered against wrongdoers based on actionable information received from whistleblowers, including more than $740 million in disgorgement of ill-gotten gains and interest, the majority of which has been or is scheduled to be returned to harmed investors. SEC

April 5, 2018

The SEC announced a whistleblower award of more than $2.2 million to a former company insider whose tips helped the agency open an investigation that led to an enforcement action. The whistleblower first reported the information to another federal agency and later provided the same information to the SEC. This is the first award paid under the “safe harbor” of Exchange Act Rule 21F-4(b)(7), which provides that if a whistleblower submits information to another federal agency and submits the same information to the SEC within 120 days, then the SEC will treat the information as though it had been submitted to the SEC at the same time that it was submitted to the other agency. SEC
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