Find Out If You’re Eligible For an SEC Whistleblower Award
The SEC whistleblower program was created in 2010. Under the terms of the program, if you voluntarily provide original information to the Securities and Exchange Commission that causes it to open a new investigation, or substantially contributes to an ongoing investigation, and the SEC collects over $1 million from the wrongdoer(s), you may be eligible to receive an SEC whistleblower award. If all other requirements are met, that award must be between 10% – 30% of the amount that the SEC collects from the wrongdoer(s).
With the proper legal guidance, the information that you provide can not only help to right the wrong of a corporate fraud, but it can also result in a significant award for you.
History of the SEC Whistleblower Award Program
In response to the Great Depression, in 1934 the U.S. Congress created the Securities and Exchange Commission (the “SEC”). The SEC was given responsibility for overseeing the nation’s public securities markets, protecting public investors, and regulating companies that seek to raise money by selling stock on the national securities markets. For over 70 years, the SEC fulfilled its mission and became one of the country’s premier regulatory agencies. But when the “Great Recession” struck in 2007-2008 and the Bernard Madoff scandal was revealed, it became apparent that the SEC needed help to keep up with the explosive growth that had occurred in the securities markets since the 1930s.
In 2010 Congress passed new a new law called the Dodd-Frank Act. As part of the Dodd-Frank Act, Congress gave the SEC the power to give monetary awards to individuals who provide the SEC with information about securities frauds or other frauds that lead to a successful SEC action. In creating the SEC whistleblower award program, Congress did more than give the SEC the help that it needed. Congress also acknowledged that people who have the courage to stand up and do what is right by reporting to the SEC deserve to be awarded for their efforts.
Many Types of Cases are Eligible For SEC Whistleblower Awards
Some people may be aware that the SEC investigates things like insider trading and ponzi schemes. What they may not realize is that the SEC also investigates many other types of things involving public companies and financial institutions, like accounting frauds, or books and records frauds. The SEC also investigates public U.S. companies that bribe officials of other countries to gain business advantages in those other countries (Foreign Corrupt Practices Act or “FCPA” violations). These are just a few examples.
If you are uncertain about whether the SEC would be interested in the information that you have uncovered, you should consider consulting with an SEC whistleblower lawyer.
The First Lawyer Ever to Win an SEC Whistleblower Award on Appeal
The founder of The Pickholz Law Offices, Jason R. Pickholz, was one of the first lawyers to win an SEC whistleblower award for a client.
He was also the first SEC whistleblower lawyer ever to successfully convince the Commission to grant his client an SEC whistleblower award over an initial recommendation by its staff to deny any award. This was the first time in the history of the SEC whistleblower program that the Commission overruled an adverse Preliminary Determination by its Claims Review Staff. (See official SEC Award here.) Inside Counsel Magazine named this as one of the “Five milestones in the Dodd-Frank whistleblower reward program“. For related articles click here (NY Times) and here (Boston Business Journal).
Mr. Pickholz is a co-author of the two-volume book Securities Crimes, published by leading legal publisher Thomson Reuters. He is also the sole author of the book’s 87 page chapter on the SEC whistleblower award program.
In recognition of his accomplishments, Mr. Pickholz was elected by his peers to be a Fellow of the New York Bar Foundation, an honor that is limited to 1% of the 72,000 lawyers in the New York State Bar Association.
You can find out more about Mr. Pickholz’s SEC whistleblower practice by clicking on the links to the top and right side of this page, or by clicking here.
If you believe that you have information that could be of help to the SEC, or want to find out if you may be eligible to receive an SEC whistleblower award, please call The Pickholz Law Offices today at 347-746-1222 for a free initial consultation.
The above information is not and should not be construed as providing legal advice. It is not and should never be considered as a substitute for consulting with your own lawyer. The use of this web site or this page does not constitute or create any attorney-client, fiduciary, or confidential relationship between The Pickholz Law Offices LLC and anyone using this web site, or anyone else. The information contained on this website is for informational purposes only. The content of this web site may not reflect current developments. Prior results do not guarantee a similar outcome. Results of prior cases or matters contained on this web site are not indicative of future results or outcomes, and should not be taken as a prediction, promise, or guarantee of any future result or outcome. No one who accesses this web site should act or refrain from acting based on anything contained on this web site. For additional terms and conditions governing the use of this web site, please click on the “disclaimer” link at the bottom of this page or click here.
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