An average of 7 whistleblower tips per day has forced the Securities and Exchange Commission to triage the tips it receives daily. Whistleblowers stand to receive substantial monetary awards for tips that lead to successful SEC action ("SEC Enforcement Division Buried in Whistleblower Tips," by Ian Thoms, Law360). In accordance with the Dodd-Frank financial reform act, whistleblowers may receive from 10 percent to 30 percent of SEC recoveries greater than $1 million.
The whistleblower rewards program appears to offer great promise. It gives the SEC a head start in identifying and dealing with fraudulent conduct. While the securities and financial services industries initially complained that these financial incentives would prevent companies from dealing with violations in-house, as employees hoping to "strike it rich" would go straight to the SEC, the benefits of the program clearly outweigh the negatives. "I've seen great tips come in," Thomas Sporkin, chief of the SEC's Office of Market Intelligence," was quoted as saying, adding: "There is a feeling here that we want to pay awards."
The SEC expects to issue its first series of awards very soon. "This is going to explode once the first award comes down," Fogel was quoted as saying, adding: "The program is only going to get bigger and bigger."
Under the SEC's rules, whistleblowers must tip through an attorney in order to remain anonymous. Fogel said that attorneys would probably handle whistleblower tips on a contingent fee basis (i.e., attorney's fees would be a percentage of any award; no award, no attorney's fees).
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.
The whistleblower rewards program appears to offer great promise. It gives the SEC a head start in identifying and dealing with fraudulent conduct. While the securities and financial services industries initially complained that these financial incentives would prevent companies from dealing with violations in-house, as employees hoping to "strike it rich" would go straight to the SEC, the benefits of the program clearly outweigh the negatives. "I've seen great tips come in," Thomas Sporkin, chief of the SEC's Office of Market Intelligence," was quoted as saying, adding: "There is a feeling here that we want to pay awards."
The SEC expects to issue its first series of awards very soon. "This is going to explode once the first award comes down," Fogel was quoted as saying, adding: "The program is only going to get bigger and bigger."
Under the SEC's rules, whistleblowers must tip through an attorney in order to remain anonymous. Fogel said that attorneys would probably handle whistleblower tips on a contingent fee basis (i.e., attorney's fees would be a percentage of any award; no award, no attorney's fees).
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.
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