Florida Whistleblowers Respond to SEC Reward Program By Tod Aronovitz | 10/26/12 | 0 Comment

More than 200 Florida whistleblowers stepped forward in Fiscal Year 2012 to participate in the whistleblower program established by the U.S. Securities and Exchange Commission (“SEC”), according to the recent U.S. Securities and Exchange Commission Annual Report on the Dodd-Frank Whistleblower Program.

Florida was the third most active state represented in the program, following only California with 435 tips and New York with 246 tips. A total of 3,001 tips were filed with the SEC during FY 2012, with 2,507 tracked to a specific state. Some tips can be filed anonymously.

Common Securities Whistleblower Categories

The most common securities whistleblower allegations nationwide, in order of decreasing frequency, are listed below:

  • Corporate disclosure and financials
  • Offering fraud
  • Manipulation
  • Insider trading
  • Trading and pricing
  • Foreign Corrupt Practices Act (FCPA)
  • Unregistered offerings
  • Market events
  • Municipal securities and public pensions

SEC Grants First Whistleblower Award

The SEC granted its first whistleblower award in August 2012 to a whistleblower who alerted the Commission to a multi-million dollar fraud. The whistleblower was paid almost $50,000, or 30 percent of collections to date, for their role beyond the initial tip in providing documentation that resulted in court actions. Additional judgments are pending in the matter, which may result in the payment of further awards.

Securities Whistleblower Incentives Authorized in Dodd-Frank

The Dodd-Frank Wall Street Reform and Consumer Protection Act amended the Securities Exchange Act of 1934 by authorizing “Securities Whistleblower Incentives and Protection.” Under Dodd-Frank the SEC can make monetary awards available to “eligible individuals who voluntarily provide original information that leads to successful Commission enforcement actions resulting in the imposition of monetary sanctions over $1,000,000, and certain successful related actions.” Awards equal 10 to 30 percent of any monetary sanctions collected.

The SEC’s whistleblower program also prohibits retaliation by employers against employees who provide information about possible securities violations.

ARONOVITZ LAW: Miami Whistleblower / Qui Tam Law Firm

The Miami law firm of ARONOVITZ LAW routinely works with Miami whistleblowers to document fraud against the government. Click on the link to read more about our Miami Whistleblower / Qui Tam law firm services.

Contact Miami whistleblower attorney Tod Aronovitz for a confidential discussion of your potential Miami Medicare fraud case.