Enforcement Director Praises SEC Whistleblower Program, Urges Whistleblowers to Report to the SEC as Soon as they Learn of Misconduct Posted September 22, 2016 By Jason The SEC’s Director of Enforcement, Andrew Ceresney, recently gave a speech directed to SEC whistleblowers and SEC whistleblower attorneys.  During his speech, the Director praised the successful early years of the SEC whistleblower program and provided some guidance to potential SEC whistleblowers and SEC whistleblower attorneys. Praise for the SEC Whistleblower Award Program Mr. Ceresney began his ... read more

SEC Whistleblower Program Exceeds $100 Million in Awards Granted Posted August 31, 2016 By Jason The SEC announced yesterday that to date it has given out over $100 million in awards to SEC whistleblowers under its whistleblower award program. This milestone comes just six years after the Dodd-Frank Act created the SEC Whistleblower Award Program, and just five years after the SEC implemented its formal procedures for its whistleblower program. The SEC’s press release quotes SEC Chair Mary Jo White as stating that in the short time of the SEC whistleb... read more

SEC Punishes 2nd Company in under a Week for Forcing Employees to Waive their Rights to SEC Whistleblower Awards Posted August 17, 2016 By Jason Yesterday, the SEC imposed sanctions on Health Net, Inc., for inserting terms into its severance agreements requiring departing employees to waive their rights to receive SEC whistleblower awards. From 2011 - 2013, Health Net made approximately 600 departing employees sign severance agreements that required them to waive “the right to file an application for award for original information submitted pursuant to Section 21F of the Securities Exchange Act of 1934.�... read more

Company Sanctioned for Requiring Employees to Waive their Rights to Receive SEC Whistleblower Awards Posted August 10, 2016 By Jason Earlier today, the SEC imposed sanctions against a public company for imposing restrictions in its severance agreements that impeded its former employees from reporting potential securities violations to the SEC and forced them to waive their rights to receive SEC whistleblower awards. The current Acting Chief of the SEC’s Office of the Whistleblower unambiguously declared:  “Companies simply cannot undercut a key tenet of our whistleblower program by requiring employees... read more

Company Pays $167.4 Million to Settle SEC Charges for Undisclosed Markups and Misleading Pricing Posted July 29, 2016 By Jason Potential SEC whistleblowers and new SEC whistleblower attorneys often wonder whether the SEC will be interested in the information that they have.  To give some examples of the kinds of things that the SEC investigates, I have written several posts about some types of cases brought recently by the SEC, and other posts in which I discussed statements made by SEC officials about the kinds of frauds that they are presently investigating. Undisclosed Markups &... read more

Company Pays Nearly $15 Million to Settle SEC Charges of FCPA Violations Posted July 06, 2016 By Jason In prior posts, I have addressed a question raised by many potential SEC whistleblowers and new SEC whistleblower attorneys, namely whether the SEC will be interested in the kind of information that they have. Sometimes the answer may be fairly obvious, such as where the information concerns insider trading or stock market manipulation. Other times it may be a bit more confusing, as with money laundering.  Most people have a general understanding of what “money laund... read more

SEC Chief of Staff Identifies Areas of Heightened Attention Posted June 30, 2016 By Jason One question that potential SEC whistleblowers often wonder about is whether the Securities and Exchange Commission (SEC) will be interested in the information that they have uncovered. Two days ago, SEC Chief of Staff Andrew J. Donohue gave a keynote address at the InvestoRegulation Conference in London, England, in which he listed some areas that the SEC is interested in.  According to Mr. Donohue, the SEC is presently focusing “heightened attention on gatekeepers, financial reporting and issuer disclosure, asset... read more

SEC Set Records for Enforcement Actions, Penalties and Disgorgements in 2015 Posted June 22, 2016 By Jason Last week, SEC Chair Mary Jo White testified before the U.S. Senate Committee on Banking, Housing, and Urban Affairs.  Several of Ms. White's comments may be of interest to potential SEC whistleblowers. 1.Testimony: SEC Sets Records in 2015 According to Ms. White, “The SEC filed a record 807 enforcement actions in FY 2015 covering a wide range of misconduct, and obtained orders totaling $4.19 billion in disgorgement and penalties, both at record levels.”  (Testimony, p. 5.) Ms... read more

SEC Whistleblower Award Program has had a “Transformative Impact” on Enforcement, SEC Chair Testifies Posted June 15, 2016 By Jason Yesterday, SEC Chair Mary Jo White testified before the U.S. Senate’s Committee on Banking, Housing, and Urban Affairs.  During her testimony, Ms. White praised the SEC Whistleblower Award Program.  (See Testimony, p. 6) According to Ms. White, “The number of whistleblower tips received by the Commission has increased each year of the program’s operation.” She further testified that “The SEC’s Office of the Whistleblower is ... read more

Proposed Act to Impose the "toughest penalties in history for financial fraud..." Posted June 08, 2016 By Jason In a speech yesterday, U.S. Representative Jeb Hensarling (R-Texas), Chairman of the House Financial Services Committee, explained some details of his proposed Financial CHOICE Act. As one might expect in an election year, Chairman Hensarling’s announcement has been met with both immediate support and criticism.  One aspect of his proposal is worth mentioning for potential SEC whistleblowers and SEC whistleblower law firms. On page 9 of his prepared remarks for the speech, Ch... read more

SEC Charges Firm with Anti-Money Laundering Violations for Failing to file SARs Posted June 03, 2016 By Jason On Wednesday, the SEC charged a Wall Street brokerage firm with “failing to sufficiently evaluate or monitor customers’ trading for suspicious activity".  The brokerage firm failed to file Suspicious Activity Reports (SARs). According to the SEC’s press release, “While the SEC has charged other firms with anti-money laundering failures … this is the first case against a firm solely for failing to file SARs”. The press release quotes the Director of the SEC’s Divisio... read more

Since 2010, Monetary Settlements Imposed by the SEC on Public Companies have Averaged $24 Million Posted May 26, 2016 By Jason Under the SEC Whistleblower Award Program, if one or more whistleblowers provide information to the SEC that it uses to bring a successful action in which it collects more than $1 million from the wrongdoers, the SEC is required to give the whistleblower(s) a monetary award of between 10% - 30% of the amount of money it collects, assuming all other requirements are met. A recent joint report by the NYU Pollack Center for Law & Business and Co... read more

SEC Actions Against Public Companies on Pace to Rise for Fourth Consecutive Year Posted May 19, 2016 By Jason In good news for potential SEC whistleblowers, since 2013 the number of SEC Enforcement actions against public companies and their related subsidiaries has been steadily rising. According to a joint report issued two days ago by the NYU Pollack Center for Law & Business and Cornerstone Research (the “Report”), the total number of actions that the SEC brought against public companies and their subsidiaries from 2013-2015 were as follows: 2013: 41 total act... read more

New Securities Crimes 2d Update Released With Expanded Chapter On The SEC Whistleblower Program Posted February 05, 2016 By Jason Leading legal publisher Thomson Reuters recently released a new update to Securities Crimes 2d, a two-volume book co-authored by Jason Pickholz, the founder of The Pickholz Law Offices.  The new release includes an expanded chapter on the SEC Whistleblower Award Program written by Mr. Pickholz, now covering 74 pages. Mr. Pickholz added Chapter 3, “The SEC Whistleblower Program,” to the book in 2013 to provide a comprehensive resource for ... read more

Jason Pickholz Elected as a Fellow of The New York Bar Foundation Posted May 06, 2015 By Jason We proudly announce that Jason Pickholz has been elected as a Fellow of The New York Bar Foundation. Election into membership in the Fellows is evidence of professional distinction recognizing outstanding achievement and dedication to the legal profession and constitutes a professional honor. As a nonprofit, philanthropic organization, The New York Bar Foundation provides grants to further its goals of: promotion and advancing service to the public, improvements in the administration of justi... read more

"Bringing In The Cavalry": Pickholz Quoted in Extensive Article About Whistleblower Client Posted May 06, 2015 By Jason William Lloyd, a Pickholz Law Offices' client and successful SEC whistleblower, gives an extensive interview about his experiences as an SEC whistleblower, which led to his receiving one of the first SEC whistleblower awards under the Dodd-Frank Act.  Jason Pickholz is quoted several times in the article, starting in the section titled "Bringing in the cavalry". Reality was setting in:  Lloyd’s credibility, and his job, were in peril....  "I need help," he told a lawyer friend at his... read more

Video Documentary on Pickholz Whistleblower Client Posted May 06, 2015 By Jason In a new video documentary published on YouTube (May 4, 2015), William Lloyd, a Pickholz Law Offices’ client, talks about his experiences as an SEC whistleblower and his receipt of one of the first SEC whistleblower awards under the Dodd-Frank Act.  Mr. Lloyd mentions his SEC whistleblower attorney, Jason Pickholz, at 2:30 into the video.  You can watch the video by clicking here. * * * About the Pickholz Law Offices LLC The Pickholz Law Offices LLC is a law firm that focuses on representing clients involved with investigat... read more

New Securities Crimes Update Released Posted December 02, 2014 By Jason Thomson Reuters has just released a new annual update to Securities Crimes 2d, a two-volume book co-authored by Jason Pickholz. Mr. Pickholz added Chapter 3, “The SEC Whistleblower Program,” to the book in 2013 to provide a comprehensive resource for SEC whistleblower attorneys and SEC whistleblowers in this new and emerging area of law.  The chapter contains knowledge and insights that Mr. Pickholz has gained as one of the first SEC whistleblower attorneys ever to win an SEC whistleblower r... read more

Study Finds DOJ and SEC Whistleblower Help Leads to $20+ Billion More in Judgments Posted November 07, 2014 By Jason The Social Science Research Network (SSRN) has released the results of a recent study that investigated the effect that DOJ and SEC whistleblowers had on financial misrepresentation actions over a 35-year period, from 1978-2012.* Notably, the Study found that the assistance of DOJ or SEC whistleblowers results in significantly higher penalties:  “In total, we estimate whistleblowers enabled regulators to successfully obtain additional judgments of $20.75 to $21.27 ... read more

8 House Representatives Push for Stronger SEC Whistleblower Protection Posted October 29, 2014 By Jason On October 27, 2014, eight Members of the U.S. House of Representatives sent a letter to Securities and Exchange Commission (SEC) Chairwoman Mary Jo White in support of increased SEC whistleblower protection.  The letter, written on the letterhead of The House Committee on Financial Services, details some of the SEC whistleblower program's successes, including its giving out over $50 million in SEC whistleblower awards since the program began. It then goes on to s... read more

SEC Whistleblower Award Program Sees Increased Activity during 2014 Posted October 21, 2014 By Jason The Securities and Exchange Commission (SEC) has issued a press release announcing increased activity in its SEC whistleblower award program during the 2014 fiscal year. The highlights that the SEC reported for 2014 included Nine (9) SEC whistleblowers received SEC whistleblower rewards (disclaimer:  one of those SEC whistleblowers who received an award was a client of the Pickholz Law Offices) The SEC gave out approximately $35 million in SEC ... read more

FINRA Arbitration Agreements Cannot Prevent SEC Whistleblowers from Communicating with the SEC Posted October 14, 2014 By Jason FINRA has issued a Regulatory Notice stating that settlement agreements, discovery stipulations, and other confidentiality agreements made during a FINRA arbitration proceeding cannot “prohibit or restrict a customer or any other person from communicating with the Securities and Exchange Commission (SEC) … regarding a possible securities law violation.” This statement is set forth in FINRA Regulatory Notice 14-40  (October 2014). ... read more

Pickholz teaches course on SEC whistleblowers Posted October 08, 2014 By Jason On October 3, 2014, Jason Pickholz taught a live webinar on SEC whistleblowers entitled "Incentives and Protections for the Modern Whistleblower".  During the program, Mr. Pickholz offers insights based upon his experience as one of the first SEC whistleblower lawyers to win an SEC whistleblower award for a client, and as the first SEC whistleblower attorney ever to win an appeal of a preliminary determination that had initially denied his client an award.  Drawing upon his personal knowledge as one of the few lawyers to d... read more

First-of-its-Kind Result: Pickholz convinces SEC to grant whistleblower award despite staff’s preliminary recommendation to deny award Posted September 15, 2014 By Jason On July 31, 2014, Jason Pickholz became one of the first SEC whistleblower lawyers to win an SEC whistleblower award for a client.  In doing so, he also became the first SEC whistleblower attorney ever to successfully convince the Commission to grant his client an SEC whistleblower reward over an initial recommendation by its Claims Review Staff to deny an award.  You can view a copy of the official SEC whist... read more

Pickholz co-authors 2-volume book Securities Crimes 2d, published by Thomson Reuters Posted September 15, 2014 By Jason Jason Pickholz is a co-author of Securities Crimes 2d, a two-volume book published by Thomson Reuters, with updates annually. The book is written as a practical resource for securities lawyers who represent clients before the U.S. Securities and Exchange Commission (SEC), and before both the SEC and the U.S. Department of Justice / U.S. Attorney's Offices in parallel investigations and proceedings, as well as at trial.  It also contains useful information for individuals ... read more