June 25, 2014 — To help protect investors from fraud in the securities industry, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 instituted a whistleblower program. The Act rewards tipsters who provide original, high-quality information that leads to an enforcement action by the Securities and Exchange Commission (SEC) that results in sanctions that top $1 million. Tipsters who collaborate with the SEC may be eligible for awards ranging between 10 and 30 percent of the amount the SEC collects.
Eight Informants Receive SEC Awards Since 2011
The SEC has awarded more than $875,000 to two whistleblowers who will split the amount evenly. Since the SEC’s program was initiated in 2011, eight tipsters have received awards.
The whistleblowers collaborated with the government by providing original information that helped the SEC bring a successful enforcement action involving a complex question of law in the securities market. Informants who notify the SEC about potential securities violations perform a valuable service by helping the agency combat fraud.
The SEC is obligated by law to protect the confidentiality of those willing to collaborate. To protect tipsters’ safety, the SEC is forbidden to reveal any information that might help to identify whistleblowers or jeopardize their privacy.
Tipsters Collaborate with SEC about Securities Violations
Employees working with firms that ignore SEC regulations deserve to know how the Dodd-Frank whistleblower program works. While Waters & Kraus is not handling this particular case, we are handling similar cases. If you have similar claims, contact us or call our attorneys at 800.784.0268. Michael Armitage and Louisa Kirakosian in Waters Kraus & Paul’s Los Angeles office have the experience needed to safeguard whistleblowers in SEC investigations.
Contact us by email or call our securities fraud lawyers at 855. 784. 0268 to learn how we can help you.