Frauds & Scandals | |
Frauds & Scandals | |
4810 VIEWS | |
![]() |
Saturday, May 25, 2019 / 05.29PM / By US SEC / Header Image Credit: SEC
The
Securities and Exchange Commission awarded more than $4.5 million to a
whistleblower whose tip triggered the company to review the allegations as part
of an internal investigation and subsequently report the whistleblower’s
allegations to the SEC and another agency.
The
whistleblower sent an anonymous tip to the company alleging significant
wrongdoing and submitted the same information to the SEC within 120 days of
reporting it to the company. This information prompted the company to
review the whistleblower’s allegations of misconduct and led the company to
report the allegations to the SEC and the other agency. As a result of the
self-report by the company, the SEC opened its own investigation into the
alleged misconduct.
Ultimately,
when the company completed its internal investigation, the results were
reported to the SEC and the other agency. This is the first time a
claimant is being awarded under this provision of the whistleblower rules,
which was designed to incentivize internal reporting by whistleblowers who also
report to the SEC within 120 days.
“In
this case, the whistleblower was credited with the results of the company’s
internal investigation, which were reported to the SEC by the company and led
to the Commission’s resulting enforcement action and the related action,” said
Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “The
whistleblower gets credit for the company’s internal investigation because the
allegations were reported to the Commission within 120 days of the report
to the company.”
The
SEC has now awarded approximately $381 million to 62 individuals since issuing
its first award in 2012. All payments are made out of an investor
protection fund established by Congress that is financed entirely through
monetary sanctions paid to the SEC by securities law violators.
No
money has been taken or withheld from harmed investors to pay whistleblower
awards. Whistleblowers may be eligible for an award when they voluntarily
provide the SEC with original, timely, and credible information that leads to a
successful enforcement action. Whistleblower awards can range from 10
percent to 30 percent of the money collected when the monetary sanctions exceed
$1 million.
On
Feb. 21, 2018, the U.S. Supreme Court issued an opinion in Digital
Realty Trust, Inc. v. Somers stating that the Dodd-Frank
anti-retaliation provisions only extend to those persons who provide
information relating to a violation of the securities laws to the SEC. The
SEC protects the confidentiality of whistleblowers and does not disclose
information that could reveal a whistleblower’s identity as required by the
Dodd-Frank Act.
For
more information about the whistleblower program and Dodd-Frank
anti-retaliation provisions, visit www.sec.gov/whistleblower/retaliation.
Related News
1.
3
Must Know Digital Tips for Potential Whistleblowers – May 18, 2018
2.
US.
SEC Announces Its Largest-Ever Dodd-Frank Whistleblower Awards –Mar
19, 2018
3.
How
To Evaluate Information Provided By A Whistleblower - Proshare – Mar
05, 2018
4.
SEC
Announces Whistleblower Award Of More Than A ... - Proshare – Oct
13, 2017
5.
Whistleblower
Accuses AlphaBeta Of Tax Evasion, Money Laundering Sept 10, 2018
6.
Does
deploying an ombudsman endanger whistleblower ... - Proshare
7.
Whistle
Blowing Policy, Guidance & FAQ - Federal ... - Proshare
8.
Code
of Corporate Governance and Guidelines for Whistle Blowing in ... –
May 21, 2014
9.
S.
306 of ISA 2007 and Whistleblowers in Nigeria - Proshare – Jan 21,
2014
10. Criminal
Investigation Initiated Into Bank Shares Fraud Allegations
11.
Court
Okays Innoson On Its Execution of Judgment Against GTB
12. SEC
Grants Approval For The Commencement Of Payment To Investors Of Dantata Success
13. No
Monies Missing, Stolen in Nigeria’s Central Bank
14. Access
Bank vs Japaul Plc : FHC Judgment On Mareva Order And Jurisdiction
15.
Egmont Group Meeting: Focus on Nigeria
16. NDIC to Investigate Banks for Failure to Make Returns on
Fraud Cases
17.
SEC Foils Penny Stock Executive’s Plan To Pump Stock And
Exploit Investors
18. Years After: Bank Customer Discovers N34m Was Withdrawn From
His Account
19. The Cost of Corruption in Nigeria ... and More Deaths Than We
Should Have