SEC Whistleblower Blog

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...

SEC Announces Settlement of HP FCPA Violation Allegations

April 11, 2014
The Securities and Exchange Commission (“SEC”) announced on April 9, 2014, that it reached a settlement with Hewlett-Packard Company (“HP”) to resolve charges filed by the U.S. government alleging that HP violated the Foreign Corrupt Practices Act (“FCPA”) when HP officials made multiple multi-million dollar payments to Russian...

SEC Whistleblower Chief Warns Against Suppression Tactics

March 27, 2014
The Securities and Exchange Commission (“SEC”) Whistleblower Chief, Sean McKessy, appeared before the Georgetown University Law Center Corporate Counsel Institute earlier this month and offered some advice to in-house attorneys.  According to Law360, Mr. McKessy suggested that in-house attorneys  may be disciplined for drafting...

SEC Whistleblowers Receive March 2014 Notices of Covered Action

March 25, 2014
The Securities and Exchange Commission (“SEC”) Office of the Whistleblower posted its March 2014 “Notices of Covered Action” yesterday.  This list, which the SEC updates monthly, notifies the public, and in particular those who have provided information to the SEC regarding perceived securities violations through the SEC...

SEC Rule 10b-5 Claims Comprise Fertile Ground for Whistleblower Tips

February 19, 2014
Cornerstone Research, in conjunction with Stanford Law School, recently published a study entitled Securities Class Action Filings - 2013 Year in Review.  The study found that federal class-action securities cases had increased by approximately nine percent in 2013.  Moreover, the study determined that claims brought under Rule...

SEC's Strategic Plan Includes Reliance on Whistleblower Tips

February 4, 2014
It’s good to hear that the U.S. Securities and Exchange Commission (“SEC”) remains committed to the Whistleblower Program that has begun to pay out significant awards to individuals who provide the SEC with information regarding potential violations of the nation’s securities laws. The SEC recently released a draft of its 2014-...

Pages