SEC Reverses Course, Awards $800,000 to Whistleblower
From the Desk of Jim Eccleston at Eccleston Law LLC:
The U.S. Securities and Exchange Commission (“SEC”) issued an $800,000 whistleblower award. As reported by Law360, what is unusual about this award is that it comes after the SEC initially denied the award claim and then subsequently reversed course.
In its preliminary determination, the SEC denied a whistleblower’s claim for an award. This denial was then contested by the whistleblower. In its order, the SEC said that “for purposes of payment on the award in this matter, we have determined to treat a separate enforcement action . . . together with the above-referenced action, as a single covered action, as the proceedings arise out of the same nucleus of operative facts.” Usually, for a whistleblower to receive an award, the SEC’s enforcement case stemming from the whistleblower’s tip must result in monetary sanctions over $1,000,000. However, in this case, the SEC found it appropriate to combine the monetary sanctions of two separate actions when determining if the $1,000,000 threshold was met.
Individuals who believe they may have a whistleblower claim to submit to the SEC should contact the professionals at Eccleston Law to discuss their options.
Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities Fraud, Compliance Protection, Breach of Fiduciary Duty, FINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.
Tags: eccleston, sec, whistleblower, settelement
