June 28, 2022

Volume XII, Number 179

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June 27, 2022

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SEC Issues $22 Million Whistleblower Award

On August 30, 2016, the SEC issued a $22 million whistleblower bounty award to an individual “whose detailed tip and extensive assistance helped the agency halt a well-hidden fraud” at the whistleblower’s employer. The Acting Chief of the SEC’s Office of the Whistleblower, credited the “company insider,” stating “[w]ithout this whistleblower’s courage, information, and assistance, it would have been extremely difficult for law enforcement to discover this securities fraud on its own.”

As with all whistleblower awards, the SEC did not disclose the circumstances that led to the award. However, based on the terms of the SEC’s whistleblower program, we know that the award is based on a range from 10 percent to 30 percent of the monetary sanctions collected by the SEC.

The $22 million award is the second largest in the history of the SEC’s whistleblower award program, following a $30 million award in 2014. The program has now surpassed $100 million in awards, awarding a total of $107 million to 33 whistleblowers. These staggering awards provide further reminder of the SEC’s commitment to providing substantial incentives to induce employees to report alleged employer misconduct.

© 2022 Proskauer Rose LLP. National Law Review, Volume VI, Number 245
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About this Author

Lloyd B Chinn, Financial, Whistleblower Attorney, Proskauer Law Firm
Partner

Lloyd B. Chinn is a Partner in the Labor & Employment Law Department and co-head of the Whistleblowing & Retaliation Group. He litigates employment disputes of all types before federal and state courts, arbitration tribunals (e.g., FINRA, JAMS and AAA), and before administrative agencies in New York and across the country. Lloyd's practice ranges from litigating compensation disputes to defending whistleblower, discrimination and sexual harassment claims. Although he represents employers in a wide range of industries, including law, insurance, health care, consulting, media,...

212-969-3341
Anthony DiBenedetto, Labor & Employment Attorney, Proskauer Law Firm
Associate

Anthony DiBenedetto is an Associate in the Labor & Employment Law Department resident in the firm’s Los Angeles office where he represents employers in all areas of labor and employment law, including unlawful discrimination, harassment, and retaliation claims, state and federal wage and hour class actions, trade secrets claims, and traditional labor law. Anthony also investigates and defends against whistleblower claims. In addition, Anthony counsels clients on compliance with state and federal employment laws and on developing, implementing and enforcing personnel...

310-284-4508
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