SEC Whistleblower Awarded more than $14 Million By Tod Aronovitz | 10/09/13 | 0 Comment

The U.S. Securities and Exchange Commission (SEC) awarded $14 million—the largest payment ever made by the SEC’s whistleblower program to date—to an unnamed whistleblower who enabled the agency to recoup considerable investor funds.

“Our whistleblower program already has had a big impact on our investigations by providing us with high quality, meaningful tips,” said SEC Chair Mary Jo White in a news release issued by the agency. “We hope an award like this encourages more individuals with information to come forward.”

According to SEC officials, the unidentified whistleblower shared crucial knowledge that led the agency to an enforcement issue more quickly than it could have otherwise ascertained on its own.  Less than six months later, the SEC was able to bring enforcement action against the possible fraudsters and secure investor funds, the news release said.

“While it is certainly gratifying to make this significant award payout, the even better news for investors is that whistleblowers are coming forward to assist us in stopping potential fraud in its tracks so that no future investors are harmed,” said Sean McKessy, chief of the SEC’s Office of the Whistleblower. “That ultimately is what the whistleblower program is all about.”

Since the SEC made its first payment to a whistleblower in August 2012, the program has paid several others who have assisted the SEC and the U.S. Dept. of Justice.  Whistleblowers’ identities are protected by law and cannot be directly or indirectly revealed.

The office was established in 2011 as authorized by Dodd-Frank Act and rewards high-quality original information that results in an SEC enforcement action with sanctions exceeding $1 million. Awards can range from 10- to 30-percent of the money collected in a case.

ARONOVITZ LAW: Miami Whistleblower / Qui Tam Law Firm

The Miami Qui Tam law firm of ARONOVITZ LAW routinely works with Miami whistleblowers to document Medicare, securities, and other forms of fraud against the government. Contact Miami Whistleblower / Qui Tam lawyer Tod Aronovitz to discuss a case.