On November 17, 2021, the U.S. District Court for the Southern District of New York held that a company and its CEO violated Rule 21F-17 of the Exchange Act by entering into confidentiality agreements with investors that prohibited communications with the SEC, and subsequently attempting to enforce those agreements. SEC
SEC Awards $400,000 to Whistleblower Culpable In Fraudulent Scheme
By Steven J. Pearlman & Pinchos Goldberg on
On November 23, 2021, the SEC issued an award of $400,000 to a whistleblower who voluntarily provided the SEC with original information that assisted the agency in bringing a successful enforcement action that resulted in the termination of an ongoing Ponzi-like scheme.
This award is notable in that the claimant…
SEC Releases FY 2021 Whistleblower Program Annual Report
On November 15, 2021, the SEC published its annual report to Congress covering the period from October 1, 2020 to September 30, 2021. The report was prepared by the SEC’s Office of the Whistleblower to summarize its whistleblower bounty program, report on the program’s recent dramatic growth, and highlight key…
SEC Awards $40 Million to Two Whistleblowers
By Steven J. Pearlman & Pinchos Goldberg on
On October 15, 2021, the SEC’s Office of the Whistleblower announced multi-million dollar awards to two whistleblowers who provided the SEC with information that assisted the agency in bringing a successful enforcement action. (The order granting the awards can be accessed here.) The larger of the two awards, $32…
SEC Announces $36 Million Award to Whistleblower
By Steven J. Pearlman & Pinchos Goldberg on
On September 24, 2021, the SEC announced an approximately $36 million award to a whistleblower who provided critical information to the SEC that contributed to a successful enforcement action. (The order granting the award can be accessed here.)
Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower…
Over $1 Billion Whistleblower Awards Paid to Date by the SEC
By Rina Kim on
On September 15, 2021, the SEC announced accumulated awards of over $1 billion paid to 207 whistleblowers since its first award in 2012. Over $500 million was awarded in fiscal year 2021 alone.
The SEC crossed the billion-dollar milestone with awards of $110 million and $4 million to two whistleblowers…
July 2021 Update of the SEC’s Covered Actions for Potential Whistleblower Claims
By Rina Kim on
SEC Alleges Employer’s Compliance Manual Violates Rule 21F-17
By Steven J. Pearlman, Pinchos Goldberg & Scott Tan on
On June 23, 2021, the SEC announced that Guggenheim Securities, LLC (“Company”) agreed to settle charges that it violated Rule 21F-17 by including language in its compliance manual and training materials that allegedly prohibited employees from contacting regulators without prior Company approval. Without admitting or denying the findings in the…
SDNY: SOX Whistleblower Protections Extend to Investors
On July 21, 2021, the U.S. District Court for the Southern District of New York held that the whistleblower protections established in SOX are not restricted to employee whistleblowers, but also extend to shareholders. SEC v. Collector’s Coffee Inc., No. 19-cv-4355.
Background
As we previously reported, in…
June 2021 Update of the SEC’s Covered Actions for Potential Whistleblower Claims
By Rina Kim on