March 5, 2021

Volume XI, Number 64

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SEC Whistleblower Awarded Over $9.2 Million For Successful Related Actions with DOJ

Today, the U.S. Securities and Exchange Commission (SEC) announced a whistleblower award of over $9.2 million issued to an individual whose reporting led to successful related actions with the Department of Justice (DOJ).

This whistleblower was previously granted an award for contributions to an SEC enforcement action, making them eligible for related-action awards that may follow.

This award marks the first SEC whistleblower award based on a non-prosecution agreement (NPA) or deferred prosecution agreement (DPA) since major amendments to the SEC Whistleblower Program became effective on December 7, 2020.

According to the award order, the SEC whistleblower provided significant information about ongoing fraud to the Commission, enabled large amounts of money to be returned to harmed investors, and traveled at their own expense to meet with the DOJ.

Under the Dodd Frank Act, SEC whistleblowers who report original information of fraud to the Commission can become eligible for whistleblower awards if the sanctions collected from enforcement actions exceed $1 million.

Since issuing its first award in 2012, the SEC Whistleblower Office has awarded over $750 million to 136 individuals. Whistleblowers who file award claims with the SEC are guaranteed full anonymity and confidentiality.

“This award reflects the Commission’s determination that a whistleblower’s eligibility for an award should not depend on the procedural vehicle a federal agency selects to resolve an enforcement matter,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “Deserving whistleblowers, like today’s awardee, will be rewarded regardless of the path used to successfully conclude the matter.”

Ben Kostyack also contributed to this article.

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Copyright Kohn, Kohn & Colapinto, LLP 2020. All Rights Reserved.National Law Review, Volume XI, Number 54
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About this Author

Mary Jane Wilmoth Whistleblower Attorney Kohn Kohn & Colapinto Law Firm
Managing Partner

Mary Jane Wilmoth is the firm’s managing partner. She litigated cases involving whistleblower protection for environmental and nuclear industry whistleblowers, and Qui Tam/False Claims whistleblowers. Ms. Wilmoth joined the firm in 1992 and worked on cases and hearings that involved complex nuclear and environmental regulations. In her efforts to uphold such safeguards in the American workplace, she has helped to strengthen whistleblower rights in licensing and...

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