Today, the U.S. Securities and Exchange Commission (“SEC”) announced awards totaling nearly $1.6 million to two whistleblowers who “provided valuable information that assisted the staff in an existing investigation,” noting that the “whistleblowers not only stepped forward to report suspicious conduct, but also continued to provide critical additional assistance.” Berman Tabacco partner, Bryan A. Wood, represented one of the whistleblowers, an outside analyst.
In announcing the awards, the SEC noted that “[w]histleblowers can provide a wealth of information and ongoing assistance that helps the SEC bring enforcement actions quicker and more efficiently.” The SEC awarded one whistleblower approximately $1,000,000, while granting a $525,000 award to Berman Tabacco’s client. The SEC praised both whistleblowers for providing “valuable information that assisted the staff in an existing investigation,” adding that the “independent analysis” provided by Berman Tabacco’s client “was helpful to the staff by narrowing the investigation’s focus” and “assisted the staff and informed the final charges brought by the Commission.”
“We are very pleased at this outcome,” commented Mr. Wood. “Today’s announcement reaffirms the SEC’s commitment to reward the work of outside analysts for the critical information and insight they provide to the launch and advancement of regulatory enforcement actions.”
Generally, the SEC does not disclose details about its whistleblower awards and, in this matter, the whistleblower has chosen to remain anonymous. Since its inception, the SEC’s Office of the Whistleblower has paid out approximately $950 million to 193 individuals.
“Not only do we applaud the tireless efforts of our client to identify this fraud from afar and explain its mechanics to regulators, but also the SEC itself for recognizing that outside analysts serve a vital function in enforcing our federal securities laws,” noted Mr. Wood. “It is our sincere hope that the SEC continues to compensate this important class of whistleblowers for the immeasurable contributions they provide in the ongoing fight against securities fraud.”
Berman Tabacco is one of the country’s highly ranked class action law firms representing institutions and individuals in lawsuits, seeking to recoup losses caused by corporate and board misconduct and violations of the securities and antitrust laws. Since 2011, the firm’s whistleblower department has represented clients before the U.S. Securities and Exchange Commission, the Internal Revenue Service and the Commodity Futures Trading Commission. In addition, we assist whistleblowers in rooting out fraud against the government through litigation brought pursuant to federal and state false claims acts, commonly known as qui tam cases. If you are considering submitting a whistleblower tip to the SEC, we urge you to contact us for a free consultation.