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Stories of Interest
- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
- Catherine Keating Appointed CEO of BNY Mellon Wealth Management
- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
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NEWSLETTERS & ALERTS
What's Different About the Latest SEC Whistleblower Award?
On Thursday, 2 days after announcing a $2.5 million whistleblower award to an employee of a domestic government agency (not a financial regulator or a law enforcement agency) – which happens to be the first-ever award to a government employee - the SEC approved a special $1.7 million whistleblower award to a corporate insider who provided the agency with critical information to help stop a fraud that would have otherwise been difficult to detect.
What makes the $1.7 million award so unusual is that the SEC had to waive certain requirements in order to approve the award. According to the SEC Order:
- The corporate whistleblower in this case initially contacted the SEC before passage of Dodd-Frank in 2010 - when the whistleblower program was created. This cutoff has cost other tipsters the chance to receive awards.
- The corporate whistleblower seemingly resolved the first issue by continuing to provide useful information to the SEC after passage of Dodd-Frank. However, ...
- ... a second new issue arose because the ‘ongoing’ information was not submitted “in writing” – as required during the year between the law’s passage and its August 2011 effective date. [Rule 21F-9(d) of Dodd-Frank].
- The corporate whistleblower resolved this second issue by resubmitting the information in a format that the Enforcement staff requested.
Similar circumstances surrounded a whistleblower award announced by the SEC in January. That award, for more than $5.5 million to another whistleblower, was issued to an informant who also began working with the SEC before Dodd-Frank, and who continued to assist the agency after the law’s passage. And, the information that the tipster provided after Dodd Frank was not provided in writing - “an omission which might normally require an award denial,” the SEC said in its order.
However, just like with the $1.7 million award, the SEC found the whistleblower qualified for a bounty nonetheless because the information apparently was then submitted “in the format that the enforcement staff expressly requested.”