The U.S. Securities and Exchange Commission (SEC) has granted an award of more than $6 million to two whistleblowers represented by Motley Rice LLC for the pair’s role in safeguarding investors and upholding market integrity. The original information the whistleblowers provided to the SEC led to a successful enforcement action that had alleged securities violations that harmed retail investors.
The whistleblowers, who acted anonymously under the SEC’s whistleblower program, reported misconduct to their employer that directly affected their clients. When their internal reporting failed to prompt their employer to act, the whistleblowers provided the SEC with documentary evidence and insights that formed the foundation of the Commission’s case.
SEC applauds whistleblowers commitment
In granting the award, the SEC acknowledged that the whistleblowers provided new information and crucial documentary evidence that formed the basis of the theory in the settled action. The SEC also commended the whistleblowers for their determination and commitment, despite the hardships they faced.
About the SEC Whistleblower Program
The SEC Whistleblower Program encourages individuals to report securities violations by offering anonymity and protection from job retaliation. Whistleblowers may be eligible for monetary awards ranging from 10% to 30% of the sanctions collected when their original information results in enforcement actions with penalties exceeding $1 million. The program addresses violations such as insider trading, bribery, market manipulation, corporate fraud, and accounting irregularities.
These awards highlight the SEC's commitment to encouraging individuals who provide valuable information that results in successful enforcement actions.
Our whistleblower protection experience
Motley Rice LLC represents whistleblowers in SEC whistleblower claims and qui tam lawsuits. They also represent whistleblowers filing claims through the whistleblower reward programs of the Commodity Futures Trading Commission (CFTC), the Internal Revenue Service (IRS), the U. S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) and the Department of Justice (DOJ).
Read more information about about the various ways Motley Rice represents whistleblowers.