We represent senior professionals in high-stakes employment matters, including corporate officers, executives, managers, and partners at professional services firms. Our clients expect clear and concise answers to their questions and a mastery of the law that enables us to quickly solve problems and formulate an effective strategy to achieve their objectives.
We pride ourselves on effective communications with clients, opposing parties, courts and administrative agencies. Click here to read reviews from our clients.
To help our clients understand their rights and options, we have drafted guides about some of our core practice areas. These guides should not be relied on as legal advice. If you are seeking legal representation, contact us at 202-262-8959 to schedule a free preliminary consultation.
Guide to Sarbanes-Oxley Corporate Whistleblower Protection Law
Guide to SEC Whistleblower Program and Tips for SEC Whistleblowers
Guide to Whistleblower Protection Act
See our video guides to learn more about your rights.
How to Get an SEC Whistleblower Award
Process to Qualify for an SEC Whistleblower Award
SEC Whistleblower Protections
Whistleblower Rewards and Bounties
Sarbanes-Oxley Whistleblower Protection
False Claims Act Whistleblower Rewards and Protections
Tax Fraud Whistleblower Rewards and Protections
Tier 1 Law Firm Representing SEC Whistleblowers
If you have information about securities fraud or other violations, contact an experienced SEC whistleblower attorney at Zuckerman Law for a free, confidential consultation by calling us at 202-930-5901 or 202-262-8959. Zuckerman Law, one of the nation’s leading law firms representing whistleblowers in whistleblower rewards and whistleblower retaliation claims, will work to quickly provide you with the highest-quality representation to maximize your likelihood of recovering and maximizing an SEC whistleblower award. We represent whistleblowers worldwide.
SEC Takes Aim at Anti-Money Laundering (AML) Program Violations
The SEC’s 2024 examination priorities clarify that the SEC continues to focus on AML compliance:
The Division will continue to focus on AML programs to review whether broker-dealers and certain registered investment companies are: (1) appropriately tailoring their AML program to their business model and associated AML risks; (2) conducting independent testing; (3) establishing an adequate customer identification program, including for beneficial owners of legal entity customers; and (4) meeting their SAR filing obligations.
Examinations of certain registered investment companies will also review policies and procedures for oversight of applicable financial intermediaries. Also, the Division will review whether broker-dealers and advisers are monitoring Office of Foreign Assets Control sanctions and ensuring compliance with such sanctions.
If you have original information about AML broker-dealer violations, contact our AML whistleblower lawyers at (202) 930-5901 or (202) 262-8959.
All inquiries are confidential. In conjunction with our courageous clients, we have helped the SEC halt multi-million dollar investment schemes, expose violations at large publicly traded companies and return funds to defrauded investors. We have secured multi-million dollar SEC whistleblower awards for our clients.
Recently the Association of Certified Fraud Examiners published a profile of Matt Stock’s success working with whistleblowers to fight fraud:
SEC AML Enforcement
In a July 2023 Risk Alert, EXAMS staff observed certain weaknesses in OFAC compliance programs, including instances in which entities did not adopt or implement reasonable, risk-based internal controls for
- following-up on potential matches with the sanctions lists and documenting the outcome of such follow-up;
- performing periodic or event-based screening of existing clients or customers based on, among other
things, changes in ownership or to the sanctions lists; and - conducting OFAC searches in a timely manner (or documenting that such searches were
completed).
The alert encourages registrants to review and strengthen the policies, procedures, and internal controls of their AML programs to further their compliance with federal AML rules and regulations, and to monitor for amendments, pursuant to
the AMLA and the Corporate Transparency Act.
SEC Whistleblower Program
Under the SEC Whistleblower Program, whistleblowers are eligible for awards when they provide original information to the SEC about federal securities laws violations, including anti-money laundering program violations, that leads to a successful enforcement action with total monetary sanctions in excess of $1,000,000. Whistleblowers are eligible to receive an award of between 10% to 30% of the monetary sanctions collected. Whistleblowers can submit tips anonymously through an AML whistleblower attorney.
Since 2012, the SEC Whistleblower Office has awarded $1.8 billion in awards to whistleblowers. The largest SEC whistleblower awards to date are $114 million and $50 million.
Anti-Money Laundering Compliance and SEC Whistleblower Awards
The primary anti-money laundering regulations require, among other things, the establishment and implementation of an anti-money laundering program, which includes, at a minimum:
- Policies, procedures, and internal controls reasonably designed to achieve compliance;
- Independent testing for compliance;
- Monitoring of the operations and internal controls of the program;
- Ongoing training for appropriate persons; and
- Appropriate risk-based procedures for conducting ongoing customer due diligence, which includes:
- Establishing, documenting, and maintaining a written Customer Identification Program; and
- Continuous monitoring to identify and report suspicious transactions.
In the event a broker-dealer identifies a suspicious transaction, the firm is required to file a SAR with the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN). In the SAR’s narrative section, broker-dealers must “[p]rovide a clear, complete and chronological description . . . of the activity, including what is unusual, irregular or suspicious about the transactions(s).” Broker-dealers violate Section 17(a) of the Exchange Act and Rule 17a-8 when the firms:
- Fail to file SARs; or
- File inaccurate SARs (e.g., incomplete narratives, incomplete critical field information, incomplete identification of suspicious activity, etc.).
These violations deprive regulators and law enforcement of important information that could be used to identify potential securities law and money laundering violations.
SEC Anti-Money Laundering Enforcement Actions
Alpine Securities Corporation AML Violations
On June 5, 2017, the SEC charged brokerage firm Alpine Securities Corporation (Alpine) with securities law violations related to its ineffective anti-money laundering program. According to the SEC’s complaint, Alpine failed to adequately file suspicious activity reports (SARs) for at least 1,950 stock transactions that the firm flagged as suspicious. Specifically, the SEC found that Alpine’s “records contained information reflecting material red flags of money laundering, securities fraud, or other illicit financial activities relating to its customers and their transactions,” yet Alpine “routinely and systematically failed to identify and report suspicious activity in its SAR filings.”
The SEC charged Alpine with thousands of violations of Section 17(a) of the Exchange Act and Rule 17a-8. The SEC requested that the court order Alpine to pay civil money penalties pursuant to Section 21(d) of the Exchange Act, which provides for penalties ranging from $5,000 to $500,000 for each violation depending on the facts and circumstances of the case. In addition to Alpine’s violations, the SEC’s complaint revealed that many of Alpine’s customers have also been charged with federal securities laws violations, including violations related to transactions that cleared through Alpine.
Raymond James AML Violations – $17 Million
In May 2016, FINRA fined Raymond James & Associates and Raymond James Financial Services $17 million for widespread violations related to their anti-money laundering programs. The violations stemmed from the firms’ failures to establish and implement adequate anti-money laundering programs, which resulted in their failures to prevent or detect, investigate, or report suspicious activity from at least November 2011 through June 2014.
Credit Suisse Securities AML Violations – $16.5 Million
In December 2016, FINRA fined Credit Suisse Securities (USA) LLC $16.5 million for “significant deficiencies” in its anti-money laundering program. According to FINRA, Credit Suisse’s program failed to effectively monitor/detect suspicious trading and money movements from at least January 2011 through December 2015. As a result, Credit Suisse was unable to determine, as it was required to do, whether SARs needed to be filed.
Oppenheimer & Company AML Violations – $10 Million
In January 2015, Oppenheimer & Company paid $10 million to settle an action by the SEC and FinCEN for failure to file SARs. According to the SEC’s complaint, Oppenheimer’s anti-money laundering program identified suspicious activity that needed to be “escalated” immediately. Specifically, the activity stemmed from an account that “(i) was a foreign broker-dealer doing business in the U.S.; (ii) selling ‘low-priced stock’ on behalf of customers; and (iii) that it immediately wired the proceeds out of the Oppenheimer account.” Despite these red flags, Oppenheimer failed to file SARs with FinCEN as required.
E.S. Financial Services AML Violations – $1 Million
In February 2016, the SEC fined E.S. Financial Services $1 million for violating anti-money laundering laws by “allowing foreign entities to buy and sell securities without verifying the identities of the non-U.S. citizens who beneficially owned them.” As mentioned, federal securities laws require broker-dealers to establish, document, and maintain a written Customer Identification Program.
Citigroup Inc. AML Violations – $70 Million
In January 2017, Citigroup Inc. paid a $70 million civil penalty for failing to meet the regulatory requirements related to its AML policies. The fine relates to a 2012 complaint that Citigroup’s AML safeguards were deficient and the bank was ordered to improve its policies. Thereafter, the Office of the Comptroller of the Currency (OCC) determined Citigroup had not come into compliance and failed in maintaining effective AML controls. This is Citigroup’s third AML fine in the past few years. In 2017, Citigroup paid $97 million after the bank’s Banamex USA (BUSA) unit violated AML rules and the Bank Secrecy Act. In 2015, Citigroup paid $140 million to settle other deficiencies in its AML program.
How to Get an AML Whistleblower Award
Guide to Anti-Money Laundering Act Whistleblower Rewards and Protections
AML Whistleblower Attorneys’ Expert Analysis About AML Whistleblower Reward Program
AML Whistleblower Law Firm
For more information about AML whistleblower rewards and bounties, contact the AML whistleblower lawyers at Zuckerman Law at 202-262-8959.
For more information about the SEC Whistleblower Program, see our eBook Tips from SEC Whistleblower Attorneys to Maximize an SEC Whistleblower Award. Click below to hear SEC whistleblower lawyer Matt Stock’s tips for SEC whistleblowers:
How Can Our SEC Whistleblower Attorneys Help You Obtain an AML SEC Whistleblower Award?
What are AML SEC Whistleblower Awards?
whistleblower_lawyers_012017_infographic
The Bank Secrecy Act (“BSA”), and implementing regulations promulgated by the Financial Crimes Enforcement Network (“FinCEN”) require that broker-dealers file SARs with FinCEN to report a transaction (or a pattern of transactions of which the transaction is a part) conducted or attempted by, at, or through the broker-dealer involving or aggregating to at least
$5,000 that the broker-dealer knows, suspects, or has reason to suspect: (1) involves funds derived from illegal activity or is conducted to disguise funds derived from illegal activities; (2) is designed to evade any requirement of the BSA; (3) has no business or apparent lawful purpose or is not the sort in which the particular customer would normally be expected to engage, and the broker-dealer knows of no reasonable explanation for the transaction after examining the available facts; or (4) involves use of the broker-dealer to facilitate criminal activity. Broker-dealers are required to file the SAR 30 calendar days after the date of the initial detection of facts that may constitute a basis for filing a SAR under the SAR Rule. 31 C.F.R. § 1023.320(b)(3). In cases where the broker-dealer cannot identify a suspect, it must file the SAR within 60 days of the initial detection of facts that may constitute a basis for filing a SAR.
The Bank Secrecy Act (“BSA”), and implementing regulations promulgated by the Financial Crimes Enforcement Network (“FinCEN”), require that broker-dealers file SARs with FinCEN to report a transaction (or a pattern of transactions of which the transaction is a part) conducted or attempted by, at, or through the broker-dealer involving or aggregating to at least $5,000 that the broker-dealer knows, suspects, or has reason to suspect: (1) involves funds derived from illegal activity or is conducted to disguise funds derived from illegal activities; (2) is designed to evade any requirement of the BSA; (3) has no business or apparent lawful purpose or is not the sort in which the particular customer would normally be expected to engage, and the broker-dealer knows of no reasonable explanation for the transaction after examining the available facts; or (4) involves use of the broker-dealer to facilitate criminal activity. 31 C.F.R. § 1023.320(a)(2) (the “SAR Rule”). Broker-dealers are required to file the SAR 30 calendar days after the date of the initial detection of facts that may constitute a basis for filing a SAR under the SAR Rule. 31 C.F.R. § 1023.320(b)(3). In cases where the broker-dealer cannot identify a suspect, it must file the SAR within 60 days of the initial detection of facts that may constitute a basis for filing a SAR.
Id.
Exchange Act Rule 17a-8 requires broker-dealers registered with the Commission to comply with the reporting, record-keeping, and record retention requirements of the BSA. The failure to timely file a SAR as required by the SAR Rule is a violation of Section 17(a) of the Exchange Act.
The BSA requires certain financial institutions, including broker-dealers and certain registered investment companies, to establish anti-money laundering (AML) programs that are tailored to address the risks associated with the firm’s location, size, and activities, including the customers they serve, the types of products and services offered, and how those products and services are offered. These programs must, among other things, include policies, procedures, and internal controls reasonably designed to achieve compliance with the BSA and its implementing rules; independent testing; and risk-based procedures to perform customer due diligence (as required by the Customer Due Diligence rule), which includes identifying and verifying the identity of customers and conducting ongoing monitoring to identify and report suspicious transactions. Where appropriate, certain financial institutions must also file Suspicious Activity Reports (SARs) with the Financial Crimes Enforcement Network. SARs can be used to detect and combat market manipulation, insider trading, Ponzi schemes, corruption, money laundering, terrorist financing, and a variety of other illicit activities potentially violative of securities and other laws and regulations.
SEC Whistleblower Attorney
Under the SEC Whistleblower Program, whistleblowers are eligible for monetary awards when they provide original information that leads to successful SEC enforcement actions resulting in monetary sanctions over $1,000,000. In exchange for the valuable information, a whistleblower may receive an award of between 10% to 30% of the total monetary sanctions collected.
Contact us today to find out the strategies that our SEC whistleblower attorneys have successfully employed to secure SEC whistleblower awards for our whistleblower clients.
Since 2012, the SEC has paid more than $1.3 billion in awards to whistleblowers, including awards paid to our clients. The largest SEC whistleblower award to date is $114 million. Since the program’s inception, whistleblower tips have enabled the SEC to order more than $5 billion in monetary sanctions against wrongdoers.
Whistleblowers may submit tips anonymously through an attorney. For many whistleblowers, it is imperative that their identity remain confidential when submitting information to the SEC. An experienced SEC whistleblower attorney can skillfully guide whistleblowers through the process, maximizing the likelihood that their identity is not revealed to unauthorized parties. In addition, an experienced SEC whistleblower attorney can maximize the likelihood of recovering an SEC whistleblower award.
Under the program, the SEC is authorized to issue payouts for original information about any violation of the federal securities laws, including:
- Accounting fraud;
- Investment and securities fraud;
- Insider trading;
- Foreign bribery and other FCPA violations;
- EB-5 investment fraud;
- Manipulation of a security’s price or volume;
- Fraudulent securities offerings and Ponzi schemes;
- Hedge fund fraud;
- Unregistered broker-dealers;
- Investment adviser fraud;
- Anti-money laundering (AML) violations;
- False or misleading statements about a company or investment;
- Inadequate internal controls;
- Deceptive non-GAAP financials;
- Improper revenue recognition;
- Violations of auditor independence rules;
- Misleading or incomplete cybersecurity disclosures; and
- Blockchain and cryptocurrency fraud.
If you have information that may qualify for an SEC whistleblower award, contact the Director of our SEC whistleblower practice directly at [email protected] or call our leading SEC whistleblower attorneys at (202) 930-5901 or (202) 262-8959. All inquiries are confidential.
In conjunction with our courageous clients, we have helped the SEC halt multi-million dollar investment schemes, expose violations at large publicly traded companies and return funds to defrauded investors. Read our tips for SEC whistleblowers and Forbes column about the success of the SEC whistleblower program.
The SEC whistleblower attorneys at Zuckerman Law, one of the nation’s leading law firms, represent whistleblowers in whistleblower rewards and whistleblower retaliation claims, will work to quickly provide you with the highest-quality representation to maximize your likelihood of recovering an SEC whistleblower award.
Recently the Association of Certified Fraud Examiners published a profile of SEC whistleblower attorney Matt Stock’s success working with whistleblowers to fight fraud:
Top-Rated SEC Whistleblower Attorneys
Click below to hear an SEC whistleblower attorney’s tips for SEC whistleblowers:
SEC Whistleblower Attorney’s Guide to SEC Program’s Rules
Under the rules of the SEC Whistleblower Program, the SEC is required to pay awards to eligible whistleblowers who:
- Voluntarily provide the SEC
- With original information
- That leads to the successful SEC enforcement action
- In which the SEC obtains monetary sanctions totaling more than $1,000,000.
Most individuals, regardless of citizenship, are eligible whistleblowers if they voluntarily submit a tip to the SEC about a violation that has occurred, is ongoing, or is about to occur. Indeed, even lawyers, external auditors, and individuals involved in the wrongdoing may be eligible for awards if certain steps are taken. If you are uncertain about your eligibility, you should consult with an experienced SEC whistleblower attorney to determine the appropriate steps.
A whistleblower must also provide the SEC with “original information”—i.e., information not already known to the SEC. If someone reports another individual’s information to the SEC first, the latter will not be entitled to a percentage of any monetary sanctions collected.
Finally, original information “leads to” a successful SEC enforcement action if it causes the SEC or other designated authorities to open an investigation, re-open a previously closed investigation, pursue a new line of inquiry, or if the information “significantly contributes” to an open investigation. A whistleblower’s information may “significantly contribute” to an open investigation in several ways, including if the information allows the SEC to bring the enforcement action in significantly less time or with significantly fewer resources, expands the scope of the current investigation, leading to additional successful claims, or allows the SEC to bring claims against additional parties.
For more information about the SEC Whistleblower Program, download the eBook Tips from SEC Whistleblower Attorneys to Maximize an SEC Whistleblower Award.
How an SEC Whistleblower Attorney Can Help You Secure an SEC Whistleblower Award
The SEC can pay awards ranging from 10% to 30% of the “monetary sanctions” collected. Monetary sanctions include any money, such as penalties, disgorgement, and interest, ordered to be paid and any money deposited into a disgorgement fund or other fund pursuant to federal law.
Since the inception of the SEC Whistleblower Program, whistleblower tips have enabled the SEC to recover nearly $5 billion in monetary sanctions from wrongdoers and the SEC Whistleblower Office has issued more than $1.2 billion in awards to whistleblowers. The table below identifies some of the largest awards that the SEC has issued to whistleblowers:
| Whistleblower Award | Date | Basis for Whistleblower Award |
|---|---|---|
| $279 million | May 5, 2023 | On May 5, 2023, the SEC announced its largest-ever award, nearly $279 million, to a whistleblower whose information and assistance led to the successful enforcement of SEC and related actions. |
| $114 million | October 22, 2020 | On October 22, 2020, the SEC announced an award of $114 million to a whistleblower whose information and "substantial, ongoing assistance" led to the successful enforcement of SEC and related actions. The award consisted of an approximately $52 million award in connection with the SEC case and an approximately $62 million award arising out of the related actions by another agency. |
| $110 million | September 15, 2021 | On September 15, 2021, the SEC announced its second-largest whistleblower award of $110 million. According to the press release announcing the award, the award consists of an approximately $40 million award in connection with an SEC case and an approximately $70 million award arising out of related actions by another agency. With the award, the SEC Whistleblower Program has now paid more than $1 billion in awards to whistleblowers. |
| $104 million | August 4, 2023 | On August 4, 2023, the SEC announced an award of $104 million to seven individuals whose information and assistance led to a successful SEC enforcement action and related actions brought by another agency. |
| $50 million | April 15, 2021 | On April 15, 2021, the SEC announced a $50 million award to joint whistleblowers. The press release announcing the award stated, "The joint whistleblowers provided exemplary assistance to the SEC staff during the investigation, including meeting with staff numerous times and providing voluminous detailed documents. The information provided by these individuals resulted in the return of tens of millions of dollars to harmed investors." |
| $50 million | June 4, 2020 | On June 4, 2020, the SEC announced its then largest-ever whistleblower award of $50 million to a whistleblower. In the press release announcing the award, the Chief of the SEC’s Office of the Whistleblower, Jane Norberg, stated: "This award is the largest individual whistleblower award announced by the SEC since the inception of the program, and brings the total awarded to whistleblowers by the SEC to over $500 million, including over $100 million in this fiscal year alone. Whistleblowers have proven to be a critical tool in the enforcement arsenal to combat fraud and protect investors." |
| $50 and $33 million | March 19, 2018 | On March 19, 2018, the SEC announced an award of $50 million to two whistleblowers and an award of $33 million to another whistleblower. See the SEC's order determining the whistleblowers' award claims here. |
| $39 and $15 million | September 6, 2018 | On September 6, 2018, the SEC announced its second-largest SEC whistleblower award to date of $39 million. According to the SEC's Press Release, the whistleblowers provided critical information and continued assistance that helped the SEC bring an important enforcement action. |
| $37 and $13 million | March 26, 2019 | On March 26, 2019, the SEC announced its third-highest SEC whistleblower award to date of $37 million. Another whistleblower received a $13 million award in the same action, totaling $50 million in awards to the two whistleblowers. |
| $36 million | September 24, 2021 | The Securities and Exchange Commission announced an award of approximately $36 million to a whistleblower "whose information and assistance significantly contributed to the success of an SEC enforcement action as well as actions by another federal agency." According to the SEC's press release announcing the award, "the whistleblower provided crucial information on an illegal scheme to the SEC's and the other agency's staffs, which included multiple meetings and the identification of key documents and witnesses. Under the SEC's whistleblower program, individuals who provide critical information to other agencies may be eligible for a related action award if they are also eligible for an award in the underlying SEC action." |
| $30 million | September 22, 2014 | A foreign whistleblower came to the SEC with “information about an ongoing fraud that would have been very difficult to detect.” This award underscores that non-US citizens are eligible whistleblowers in the SEC Whistleblower Program. |
| $28 million | May 19, 2021 | On May 19, 2021, the SEC announced an award to a whistleblower totaling more than $28 million in connection with an SEC enforcement action and a related action by another federal agency. The whistleblower’s information caused both the SEC and the other agency to open investigations that resulted in significant enforcement actions. |
| $28 million | November 3, 2020 | The SEC issued a $28 million award to a whistleblower who "provided significant information that aided the SEC in bringing a successful enforcement action." According to the press release announcing the award, the whistleblower "internally reported information that prompted the company to initiate an internal investigation, and saved the staff time and resources by providing testimony and identifying a key witness." |
| $27 million | May 17, 2021 | The SEC awarded almost $27 million to two whistleblowers who provided SEC staff with "new information and assistance during an existing investigation, including meeting with the staff in person on multiple days." According to the SEC's press release, the whistleblowers' "information and cooperation helped the Commission bring the enforcement action, which resulted in the return of millions of dollars to harmed investors." |
| $27 million | April 16, 2020 | The SEC issued a $27 million award to a whistleblower who alerted the agency to misconduct occurring, in part, overseas. After providing the tip to the SEC, the whistleblower provided critical investigative leads that advanced the investigation and saved significant SEC resources. For more information, click here. |
| $23 million | June 2, 2021 | The SEC issued two awards of approximately $13 million and $10 million to two whistleblowers whose information and assistance led to successful SEC and related actions. According to the SEC's press release: "The whistleblowers’ information and assistance led to multiple successful enforcement actions related to a complex and fraudulent scheme involving multiple individuals and tens of millions of dollars in ill-gotten gains.” |
| $22 million | May 10, 2021 | On May 20, 2021, the SEC issued awards totaling $22 million to two whistleblowers whose information and assistance were of "crucial importance to successful SEC enforcement actions brought against a financial services firm." According to the SEC's press release: "The first whistleblower received an award of $18 million, while the second whistleblower received a $4 million award [because] the first whistleblower was the initial source of the investigation while the second whistleblower submitted information much later after the investigation was already underway." |
| $22 million | September 30, 2021 | The SEC issued an award of almost $30 million to two insider whistleblowers whose tips led SEC staff to open an investigation. The first whistleblower, who was the first to alert SEC staff of potential wrongdoing and provided substantial, ongoing assistance, received an award of approximately $22 million. The second whistleblower provided additional valuable information, which significantly contributed to the success of the SEC's enforcement action, and received an award of approximately $7 million. |
| $22 million | August 30, 2016 | A former financial executive at Monsanto exposed weaknesses in the company’s internal controls that failed to account for millions of dollars in rebates. Monsanto agreed to settle the allegations of accounting fraud for $80 million. Importantly, external auditors, internal auditors, accountants and other compliance personnel may be eligible for awards under the SEC Whistleblower Program. Indeed, they are often best positioned to discover wrongdoing. |
| $20 million | November 14, 2016 | According to the SEC's order determining the whistleblower awards, three whistleblowers applied for awards related to the enforcement action. The SEC denied two of the whistleblowers' applications because they did not provide "original information," and issued the full $20 million award to one whistleblower. |
| $18 million | April 28, 2020 | The SEC announced an award of more than $18 million to a whistleblower whose tip prompted an enforcement action that returned millions of dollars to retail investors. |
| $17 million | June 9, 2016 | A company insider “substantially advanced the agency’s investigation and ultimate enforcement action.” This award highlights that whistleblowers may receive an award if they provide original information regarding an open SEC investigation if it significantly contributes to the success of the action. |
| $16 million | November 30, 2017 | Two whistleblowers received awards of more than $8 million each for providing the SEC with critical information that led to a successful enforcement action. This award demonstrates how whistleblowers can receive an increased award percentage for providing ongoing, extensive, and timely assistance to the SEC. As detailed in the SEC's order, the second whistleblower received the same $8 million award as the first whistleblower by providing additional significant information and ongoing assistance to the SEC that "enabled the Enforcement staff to more fully and quickly understand the misconduct and to assess the legal consequences... [which] saved a substantial amount of time and resources in the Investigation." |
| $14 million | September 30, 2013 | The whistleblower exposed a fraudulent offering that targeted foreign investors who sought to gain a legal pathway to citizenship through the EB-5 Immigrant Investor Program. |
| $9.2 million | February 23, 2021 | The whistleblower provided significant information about an ongoing fraud to the SEC that enabled a large amount of money to be returned to investors harmed by the fraud. In addition, the whistleblower information led to successful related actions by the DOJ, one of which was a non-prosecution agreement (NPA) or deferred prosecution agreement (DPA). The award marks the first SEC whistleblower "related action" award based on a NPA or DPA with the DOJ since amendments to the SEC’s whistleblower program rules became effective on Dec. 7, 2020. |
| $7 million | January 23, 2017 | Three whistleblowers split an award of more than $7 million after helping the SEC prosecute an investment scheme. One whistleblower provided information that was the primary reason that the SEC opened an investigation. That whistleblower received a more than $4 million award. Two other whistleblowers jointly provided new information during the SEC’s investigation that significantly contributed to the success of the SEC’s enforcement action. Those two whistleblowers will split more than $3 million. |
| $5.5 million | January 6, 2017 | An anonymous whistleblower orally provided the SEC with critical information about ongoing securities fraud. Generally, the SEC requires that whistleblower provide information “in writing.” However, the SEC waived that requirement in this case due to “highly unusual circumstances” and awarded the whistleblower more than $5.5 million for the information. This award marks the third time that the SEC has deemed it appropriate to waive a procedural requirement. The most recent exception occurred on July 27, 2017, when the SEC issued a $1.7 million whistleblower award to an insider who failed to comply with all of the whistleblower program's rules and had some culpability in the fraud. The former chief of the SEC whistleblower office said that these awards underscore the SEC’s discretionary authority to do what justice requires. |
| $5 million | April 20, 2020 | The SEC issued a $5 million award to a whistleblower who provided significant information that led to a successful enforcement action. According to the SEC, the whistleblower provided critical evidence of wrongdoing, which helped save time and resources in the SEC’s investigation, and the whistleblower suffered a unique hardship as a result of raising concerns internally. |
| $5 million | May 17, 2016 | A former company insider’s detailed tip led the agency to uncover securities violations that would have been nearly impossible for it to detect but for the whistleblower’s information. The SEC's press release noted that employees are often best positioned to witness wrongdoing. |
| $4 million | April 25, 2017 | The SEC issued the $4 million award to an anonymous whistleblower who provided information that led another governmental authority to a successful enforcement action resulting in significant monetary sanctions. This award highlights that SEC whistleblowers may be eligible for awards for "related actions." |
| $4 million | September 30, 2016 | The SEC issued the award to an anonymous whistleblower for “alter[ing] the agency to a fraud.” The lack of publicly available information about the anonymous whistleblower and the enforcement action underscores how serious the SEC is about protecting whistleblower's. Under the program, whistleblower may report anonymously through an SEC whistleblower attorney. |
| $3.8 million | July 14, 2020 | The SEC issued a $3.8 million award to a whistleblower that provided new information during the course of an ongoing investigation into a fraudulent scheme. According to the order announcing the award, the information that the whistleblower provided “helped the Commission halt an ongoing fraud and return millions of dollars to harmed investors.” |
| $3.5 million | May 13, 2016 | The whistleblower “bolstered an ongoing investigation with additional evidence of wrongdoing” which helped the SEC during settlement discussions with the company. This award underscores how whistleblowers may still receive an award even if the SEC already has an open investigation into a matter. |
Protections for SEC Whistleblowers: How our SEC Whistleblower Attorneys Can Help You Combat Retaliation
SEC whistleblowers are also offered anti-retaliation protections. Specifically, an employer may not “discharge, demote, suspend, threaten, harass, directly or indirectly, or in any manner discriminates against, a whistleblower” for legally reporting a violation of the federal securities laws to the SEC. Relief or damages for retaliation include reinstatement, double backpay, and litigation costs and reasonable attorneys’ fees. SEC whistleblowers are also afforded protections under the Sarbanes-Oxley Act (SOX).
SEC Whistleblower Attorneys’ Tips for SEC Whistleblowers
Since August 2011, the SEC Whistleblower Office has received over 40,200 tips. According to the SEC Whistleblower Program’s 2020 Annual Report to Congress, the number of whistleblower tips has increased in nearly every year since the inception of the program:
- FY 2011: 334
- FY 2012: 3,001
- FY 2013: 3,238
- FY 2014: 3,620
- FY 2015: 3,923
- FY 2016: 4,218
- FY 2017: 4,484
- FY 2018: 5,282
- FY 2019: 5,200
- FY 2020: 6,900
Due to the increased quantity of tips, it is imperative that whistleblowers prepare high-quality submissions that grab the SEC’s attention. Otherwise, whistleblowers run the risk of having their tip fall to the wayside like most of the tips.
An experienced SEC whistleblower attorney can help whistleblowers get noticed by drafting a Form TCR that will grab the SEC’s attention and highlight the most important aspects of the claim. A thorough and persuasive submission prepared by an experienced SEC whistleblower attorney will also increase the likelihood that the SEC will act on the tip. Further, an experienced SEC whistleblower attorney will draft a TCR with an eye to the future and include significant factors that could increase the percentage of a potential award.
In addition to preparing the TCR, an SEC whistleblower attorney can determine the appropriate evidence to provide (or not provide) to the SEC as well as advise the whistleblower on any potential exposure as a result of providing the evidence.
Finally, and as a practical matter, the SEC will likely view a whistleblower’s tip as more credible if it is submitted by a reputable SEC whistleblower attorney who has prior experience working with the SEC Whistleblower Office.
SEC Whistleblower Attorney: FAQs About SEC Whistleblower Awards
- What is the SEC Whistleblower Program?
- What is the SEC Office of the Whistleblower?
- What are the largest SEC whistleblower awards?
- Can I submit an anonymous tip to the SEC Office of the Whistleblower?
- What exactly does anonymous whistleblowing entail?
- What employment protections are available for SEC whistleblowers?
- What violations qualify for an SEC whistleblower award?
- Can the SEC bring enforcement actions against international schemes?
- Who is an “eligible” SEC whistleblower?
- Can compliance personnel, auditors, officers or directors qualify for SEC whistleblower awards?
- Can I submit a claim if I had some involvement in the fraud or misconduct?
- Can culpable whistleblowers qualify for SEC whistleblower awards?
- Do I have to report a potential violation to my company before reporting it to the SEC?
- What type of evidence should I provide to the SEC?
- Can I use confidential company documents to expose fraud?
- Can I disclose secret recordings to the SEC?
- Can I submit a tip if I agreed to a confidentiality provision in an employment/severance agreement?
- When is the best time to report the fraud or misconduct to the SEC?
- What is “original information”?
- Can I submit an SEC Whistleblower claim if the SEC already has an open investigation into the matter?
- How might my information “lead to” a successful SEC enforcement action?
- What “related actions” qualify for an SEC whistleblower award?
- How do the best SEC whistleblower law firms advocate for whistleblowers?
- How do I choose the best whistleblower attorney?
- Why should I choose the Zuckerman Law to represent me in my SEC whistleblower claim?
- How do I submit a tip to the SEC Office of the Whistleblower?
- What happens after I submit a tip to the SEC?
- What factors does the SEC consider when determining the amount of the award?
- What happens after I apply for an SEC whistleblower award?
- How long does it take to receive an SEC whistleblower award?
SEC Whistleblower Attorneys Helping Whistleblowers Successfully Navigate the SEC Whistleblower Process
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ABOUT ZUCKERMAN LAW
Summary
We are a Washington, DC-based law firm that represents whistleblowers in whistleblower rewards and whistleblower retaliation matters and litigates discrimination claims on behalf of employees in the District of Columbia, Maryland, and Virginia. The firm is dedicated to zealously advocating on behalf of our clients to achieve justice and accountability.
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