Whistleblower Receives $500,000 By Contacting SEC After Reporting Internally
The SEC awarded more than $500,000 to a whistleblower who reported information about potential wrongdoing to the SEC within 120 days of reporting the same information internally. The information led to successful cases against the whistleblower’s employer by the SEC and another unnamed agency. Under SEC rules, a whistleblower who reports to the SEC within 120 days is deemed to have reported at the same time as the internal report. The SEC has already made 40 whistleblower awards this year. Since inception, the whistleblower program has awarded $760 Million to 145 individuals.
The 120-day rule puts pressure on companies to move very quickly to internally resolve potential cases to head off a whistleblower claim. Never forget that an internal whistleblower has a significant financial incentive to call the SEC.
To read the full SEC action, click here.