Whistleblower Receives Over $37 Million from SEC

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The Securities and Exchange Commission awarded over $37 million to a whistleblower who came forward with information leading to a successful SEC enforcement action, and a related action.

The SEC’s Office of the Whistleblower

When whistleblowers come forward to the SEC’s Office of the Whistleblower, they report alleged misconduct to the SEC and other appropriate government agencies. The SEC may choose to investigate the claims and proceed with an enforcement action.

In this case, the whistleblower originally reported the misconduct internally. Their employer conducted an internal investigation and reported the alleged misconduct to the SEC—but the whistleblower is the one who receives credit for the claim, since they provided the same information to the SEC within 120 days of their initial internal report.

The funds for whistleblower awards come from an investor protection fund established by Congress. This is financed by monetary sanctions paid to the SEC by violators of securities law, as opposed to harmed investors.

If you have information about financial or other company violations, you may be eligible for a whistleblower award. Whistleblowers who voluntarily provide the SEC with “original, timely and credible information” which leads to a successful enforcement action may receive anywhere from 10 to 30 percent of the money collected when sanctions exceed $1 million. Furthermore, a whistleblower’s identity is concealed by the SEC under the Dodd-Frank Act, which further incentivizes whistleblowers to speak up.

When you’re ready to blow the whistle on your employer or other bad actors, a knowledgeable whistleblower attorney at Kardell Law Group can help. Call today to learn more.

By Steve Kardell | Published April 18, 2023 | Posted in Fraud, Whistleblower Litigation | Tagged Dodd-Frank Act, SEC, SEC award

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"Steve Kardell was terrific in representing me in some very adversarial discussions with Citigroup and also later represented me in my testimony before the Financial Crisis Inquiry Commission." -Richard Bowen, Citigroup Whistleblower
"Incredible knowledge of employee related concerns and equally brilliant knowledge of health care regulations, standards of practice. I would recommend this firm to anyone." -V.B.
"Reaching out to Steve Kardell was the best decision I made. His ability to provide immediate insight and direction was very powerful, and a huge relief during a very stressful time period. For anyone struggling with a whistleblower situation, I would highly recommend at least speaking with Steve. After a 10 minute call with him, I had a better understanding of what I was dealing with. Even better, he gave me some immediate hope. In the end Steve did a better job than I thought was possible. Steve was able to get in contact with people in my organization, that I didn’t have access to. Because of his years of experience, he already has contacts in many organizations in Dallas. The entire situation was handled peacefully. I was impressed by his ability to “keep the peace”–rather than creating a battle with the organization. The reason I didn’t reach out to a lawyer initially, was because I thought it would mean an immediate end to any hope of a positive relationship with the company. Steve was able to address my concerns, and in the end I was able to continue to work for them." -KS
"Never thought my career would end like it did after 30 years of service. I was part of the first round of the so called reduction of force. I asked myself how can I be part of this with 30 years of seniority. How did they pick these 90 plus employees? Now, the culture of this organization made you question every decision they made. It wasn’t what you knew it’s was a culture of who you know. Nonetheless, I did not accept their severance package. I immediately starting looking for an attorney who would take on my case. After the initial call to Steve I had hope again. He was open and honest about everything and reassured me he would do his best for me, and he did. I had an awesome outcome. Thanks Steve you’re the best." -S.S.