Published: August 15, 2016

The Securities and Exchange Commission recently announced that it had levied a $265,000 penalty against an Atlanta-based company, claiming the company’s severance agreements undercut its whistleblower program. By signing the severance agreements, outgoing employees agreed to waive recovery of potential whistleblower awards.  According to the SEC, these severance agreements violated Rule 21F-17, which prohibits impeding someone from telling the SEC about possible securities law violations.

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Published: May 20, 2016

On May 13th and 17th, 2016, the U.S. Securities and Exchange Commission (SEC) announced that it had given awards of over $3.5 million and $5 million to two different whistleblowers. The Dodd-Frank Wall Street Reform and Consumer Protection Act created the SEC’s whistleblower program in 2010.  The award of $5 million was the third largest whistleblower award ever issued by the SEC’s whistleblower program. 
 

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Published: May 13, 2016

Federal agencies are now promulgating regulations nearly doubling the per claim civil penalty for False Claims Act violations. The Bipartisan Budget Act of 2015 requires federal agencies to implement a “catch up adjustment” based on inflation to increase civil FCA penalties from the current range of $5,500-$11,000 per claim. The Railroad Retirement Board just published an interim final rule setting a new range of $10,781-$21,563 per claim.

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Published: April 11, 2016

The U.S. Commodity Futures Trading Commission (CFTC) announced on April 4, 2016 that it awarded over $10 million to a whistleblower.  This is the largest award made by the CFTC’s Whistleblower Program. 
 

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Published: March 26, 2015

The Securities and Exchange Commission (SEC) plans to award between $475,000 and $575,000 to a former company officer who reported “original, high-quality information about a securities fraud that resulted in an SEC enforcement action with sanctions exceeding $1 million.”  Generally, company officers, directors, trustees or partners who learn about fraud through internal reports are not eligible for whistleblower awards.

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Published: December 10, 2014

In Brief:

The Securities and Exchange Commission has unveiled new data about tipsters who report corporate wrongdoing under the Dodd-Frank Whistleblower Program. This whistleblower profile data is a powerful tool that can help businesses prudently address the concerns of those whistleblowers most likely to report to SEC.

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Published: September 30, 2014

In Brief

  • The Securities and Exchange Commission awarded $300,000 to a whistleblower who performed audit and compliance functions at a company.

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