Enforcement Director Praises SEC Whistleblower Program, Urges
Whistleblowers to Report to the SEC as Soon as they Learn of
Misconduct

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
speech
by declaring that “I cannot overstate the appreciation we have
for the willingness of whistleblowers to come forward with
evidence of potential securities law violations.  I often
speak of the
transformative impact
that the program has had on the Agency”.  He concluded his
speech by stating that he anticipates “that the whistleblower
program will continue to be a game changer in future years. 
In fact, my prediction is that it will take us significantly
less time to announce that we have passed the $200 million
milestone [for awards given out] than it did to pass the
$100 million
mark.”

The SEC Whistleblower Program is growing, with more and more
people choosing to come forward and report securities crimes
and violations to the SEC.  According to Mr. Ceresney,
in 2015
the SEC saw an increase in whistleblower tips of 30% over
fiscal year 2012, and added that “we are on target to exceed
that level this year.”

He also chose to mention three broad “classes” or
types of cases
that have seen double-digit increases in tips reported to the
SEC by whistleblowers.  After each one, he specifically stated
that the SEC hopes these whistleblower reporting trends will
continue.

Urging Potential Whistleblowers to Report to the SEC as Soon
as they Learn of Misconduct

One important message that Mr. Ceresney emphasized to
potential SEC whistleblowers “is to report as soon as you
learn of misconduct”.  Some of the reasons he gave for this
were “you never know whether someone else will report, whether
the information will become stale, or whether the statute of
limitations will run.  Coming forward without delay also helps
prevent misconduct from continuing unabated while investors
suffer more harm.”

Moreover, “Unreasonable delay in the reporting of information
to us is a significant factor the Commission considers in
determining the amount of a whistleblower award.”  According
to Mr. Ceresney, “approximately 20% of the awards made through
2015 were reduced because of an unreasonable reporting delay.”

The Importance of SEC Whistleblower Attorneys

Mr. Ceresney also commended the involvement of SEC
whistleblower attorneys and explained some of the ways that
the Commission finds their involvement to be helpful.  To my
knowledge, this is the first time that a senior SEC official
has publicly expressed views specifically about the role and
significance of SEC whistleblower attorneys.

According to Mr. Ceresney, “we welcome the involvement of” SEC
whistleblower lawyers.  Experienced SEC whistleblower lawyers
“can help with up-front triage of tips to identify those that
have a nexus with the federal securities laws and that may
have merit.”  Furthermore, experienced SEC whistleblower
lawyers “can work with whistleblowers going forward to
identify information that will be important to us and that
will allow us to advance our investigations.”

* * *

About the Pickholz Law Offices LLC

The Pickholz Law Offices LLC is a law firm that focuses on
representing clients involved with investigations conducted by
the U.S. Securities and Exchange Commission, FINRA, and other
securities regulators.

The Pickholz Law Offices has represented employees, officers,
and others in SEC whistleblower cases involving financial
institutions and public companies listed in the Fortune Top
10, Top 20, Top 50, Top 100, Top 500, and the Forbes Global
2000. We were the first law firm ever to win an SEC
whistleblower award for a client on appeal to the full
Commission in Washington. Inside Counsel magazine named this
achievement one of the five key events of the SEC
whistleblower program. Examples of the
Firm’s SEC whistleblower cases are available here.

In addition to representing SEC whistleblowers, since 1995 the
Firm’s founder, Jason R. Pickholz, has also represented many
clients in securities enforcement investigations conducted by
the SEC, FINRA, the U.S. Department of Justice and US
Attorney’s Offices, State authorities, and more. Examples of
some of the many
securities enforcement cases that Mr. Pickholz has been
involved with are available here.

You can see what actual clients have had to say about The
Pickholz Law Offices by going to the
Client Reviews page on our website or by clicking here.

How to Contact the Pickholz Law Offices LLC

If you would like to speak with a securities lawyer or SEC
whistleblower attorney, please feel free to call Jason R.
Pickholz at 347-746-1222.

The Pickholz Law Offices remains open and will be fully
operational through teleworking while we all grapple with this
terrible pandemic. We hope that all of our clients,
colleagues, friends, and their families remain safe and
healthy. Our thoughts and prayers go out to everyone who has
been affected by COVID-19.