SEC Whistleblower Blog

Wall Street Journal Reports on SEC Whistleblowers

August 4, 2014
On July 29, 2014, the Wall Street Journal (WSJ) released a detailed news report concerning the Securities and Exchange Commission (SEC) Whistleblower Program.  The WSJ obtained demographic information about the 6,500 people who have submitted whistleblower claims to the SEC since the start of its whistleblower program in mid-...

Smith & Wesson Agrees to Pay $2 Million to Settle FCPA Charges

August 1, 2014
On July 28, 2014, the U.S. Securities and Exchange Commission (SEC) charged Smith & Wesson Holding Corporation with violating the Foreign Corrupt Practices Act (FCPA).  According to the SEC’s claims, the firearms manufacturer had employees make illegal payments to foreign officials in attempts to secure contracts overseas...

GAP Starts Petition to Support Financial Whistleblowers

July 28, 2014
On July 24, 2014, Louis Clark, President and Corporate/Financial Accountability Director for the Government Accountability Project (GAP), launched a petition to SEC Chair Mary Jo White asking the SEC to strengthen its Whistleblower Program.  Since the passage of the Dodd-Frank Act in 2010, financial corporations have made...

SEC Pursues Enforcement Action Against Violators of the FCPA in 2014

July 15, 2014
According to Gibson Dunn’s 2014 Mid-Year FCPA Update, the Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC) have been aggressively pursuing enforcement actions against both individuals and companies who violate the Foreign Corrupt Practices Act (FCPA).  According to the report, the FCPA’s anti-...

SEC Takes Enforcement Actions Against Ponzi Schemes

June 17, 2014
In recent months, the U.S. Securities and Exchange Commission (“SEC”) has taken several enforcement actions against individuals and entities who perpetrate investment scams on unwitting investors, which are commonly referred to as “Ponzi” or “pyramid” schemes.  The SEC has noted that “curtailing Ponzi schemes and holding...

SEC Whistleblower Office Initiates First Retaliation Case

June 17, 2014
On June 16, 2014, the U.S. Securities and Exchange Commission (“SEC”) charged Paradigm Capital Management with violations of securities law for engaging in unlawful transactions and retaliating against a whistleblower who reported Paradigm’s illegal activity to the SEC. This marks the first time that the SEC has brought an...

Federal Court Adopts Broad Interpretation of Dodd-Frank Whistleblower Protection Provision

June 5, 2014
Another federal court has ruled that internal reports of securities violations are protected by the whistleblower protection provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank”). On May 21, 2014, the United States District Court for the District of Nebraska held in Bussing v. COR...

SEC Grants First Dodd-Frank Whistleblower Award of 2014

June 4, 2014
The Securities and Exchange Commission (“SEC”) announced on Tuesday, June 3, 2014, that it had awarded two whistleblowers a total of $875,000 for information they provided to the SEC that led to a successful enforcement action.  Given its commitment to ensuring the anonymity of SEC whistleblowers, the agency declined to provide...

SEC Rejects Whistleblower Request to Extend Award Eligiblity

May 29, 2014
The Securities and Exchange Commission (“SEC”) denied a whistleblower an award because the individual failed to submit a claim for the whistleblower reward within the required 90-day time period.  This news underscores how important it is for whistleblowers who have submitted tips to the SEC carefully track the SEC Office of...

CFTC Whistleblower Office Issues First Whistleblower Award

May 23, 2014
The Commodity Futures Trading Commission (“CFTC”) announced earlier this week that it had issued its first award pursuant to the agency’s whistleblower program, which was created by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.  The program rewards whistleblowers for providing the government information...

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