SEC Whistleblower Reward Program

February 7, 2017

Partner Eric Havian quoted in the SF Chronicle, Federal law may prompt corporate whistle-blowers to act.

January 23, 2017

The Securities and Exchange Commission announced an award of more than $7 million split among three whistleblowers who helped the SEC prosecute an investment scheme.  One whistleblower provided information that was a primary impetus for the start of the SEC’s investigation.  That whistleblower will receive more than $4 million.  Two other whistleblowers jointly provided new information during the SEC’s investigation that significantly contributed to the success of the SEC’s enforcement action.  Those two whistleblowers will split more than $3 million.  SEC

January 6, 2017

The SEC announced an award of more than $5.5 million to a whistleblower who “provided critical information that helped the SEC uncover an ongoing scheme.”  Jane Norberg, Chief of the SEC’s Office of the Whistleblower, lauded the whistleblower for “boldly stepping forward while still employed at the company.”  SEC

December 20, 2016

Oklahoma-based oil-and-gas company SandRidge Energy Inc. will pay a $1.4 million penalty, subject to the company’s bankruptcy plan, to settle charges that it used illegal separation agreements and retaliated against a whistleblower who expressed concerns internally about how its reserves were being calculated.  The SEC’s order found that SandRidge regularly used restrictive language in its separation agreements that purported to prohibit outgoing employees from participating in any government investigation or disclosing information potentially harmful or embarrassing to the company.  The SEC’s order further found that SandRidge fired an internal whistleblower who kept raising concerns about the process used by SandRidge to calculate its publicly reported oil-and-gas reserves.  SEC

December 19, 2016

Virginia-based technology company NeuStar Inc. will pay $180,000 to settle charges involving its severance agreements that impeded at least one former employee from communicating with the SEC.  The SEC’s order found that NeuStar violated a whistleblower protection rule by routinely entering into severance agreements that contained a broad non-disparagement clause forbidding former employees from engaging with the SEC.  Former employees could be compelled to forfeit all but $100 of their severance pay for breaching the clause.  The severance agreements were used with at least 246 departing employees between 2011 and 2015.  NeuStar voluntarily revised its severance agreements promptly after the SEC began investigating and agreed to make reasonable efforts to inform those who signed the severance agreements that NeuStar does not prohibit former employees from communicating any concerns about potential violations of law or regulation to the SEC.  SEC

December 9, 2016

The SEC announced the award of approximately $1 million to a whistleblower “whose tip enabled the SEC to bring multiple enforcement against wrongdoers.”  SEC

December 5, 2016

The SEC announced the award of approximately $3.5 million to a whistleblower who came forward with information that led to a successful SEC enforcement action.  The award brings the total awards under the program to approximately $135 million.  SEC

November 14, 2016

The SEC announced the award of more than $20 million to a whistleblower who “promptly came forward with valuable information that enabled the SEC to move quickly and initiate an enforcement action against wrongdoers before they could squander the money.”  The award is the third-highest since the SEC’s whistleblower program issued its first award in 2012.  SEC