{"id":5185,"date":"2011-07-28T00:00:00","date_gmt":"2011-07-28T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2011\/07\/whistleblowers_to_be_awarded_f"},"modified":"2022-04-04T15:49:08","modified_gmt":"2022-04-04T20:49:08","slug":"whistleblowers-to-be-awarded-f","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/whistleblowers-to-be-awarded-f\/","title":{"rendered":"Whistleblowers to Be Awarded from $453 Million SEC Fund"},"content":{"rendered":"<p>According to Sean McKessy, the head of Securities and Exchange Commission\u2019s Whistleblower Office, the agency has a $453 million fund from which to award bounties under its new whistleblower program. Kessey recently spoke during a BNA webinar.<\/p>\n<p>The 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act requires that certain whistleblowers receive 10-30% of an award in a successful prosecution or action. The percentage of the award will depend on the how significant the information the whistleblower provided was to the outcome of the action, how much help he\/she gave, and the SEC\u2019s degree of interest in stopping certain kinds of misconduct, such as insider trading. The percentage awarded remains at the SEC\u2019s discretion.<\/p>\n<p>As our <a href=\"https:\/\/www.securities-fraud-attorneys.com\/\">securities fraud lawyers<\/a> mentioned in a recent blog post, there have been mixed reactions over whether someone who decides to turn whistleblower should go to an employer first before going to the SEC. House Republicans have even introduced a new bill that would mandate that a whistleblower have reported its information internally in order to qualify for part of the whistleblower bounty. For now, however, while the new program offers incentives for a whistleblower to go inside the corporation with his\/her information first, the SEC doesn\u2019t require it. ( As noted by McKessey, that the final rules left on this requirement \u201cevidence a determination that doing so could be detrimental to the program and inconsistent with the statute.\u201d) For example, if an employee were to report an issue to internal compliance, which then resulted in the company launching a probe and discovering additional violations, under the SEC\u2019s incentive program, the whistleblower to be eligible for a bounty amount that would factor in all violations and not just the one that he\/she initially reported.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/whistleblowers-to-be-awarded-f\/\"  title=\"Continue Reading Whistleblowers to Be Awarded from $453 Million SEC Fund\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>According to Sean McKessy, the head of Securities and Exchange Commission\u2019s Whistleblower Office, the agency has a $453 million fund from which to award bounties under its new whistleblower program. Kessey recently spoke during a BNA webinar. The 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act requires that certain whistleblowers receive 10-30% of an [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3761,3938],"tags":[],"class_list":["post-5185","post","type-post","status-publish","format-standard","hentry","category-securities-and-exchange-commis","category-whistleblowers"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Whistleblowers to Be Awarded from $453 Million SEC Fund &#8212; Investor Lawyers Blog &#8212; July 28, 2011<\/title>\n<meta name=\"description\" content=\"According to Sean McKessy, the head of Securities and Exchange Commission\u2019s Whistleblower Office, the agency has a $453 million fund from which to award &#8212; July 28, 2011\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/whistleblowers-to-be-awarded-f\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Whistleblowers to Be Awarded from $453 Million SEC Fund &#8212; Investor Lawyers Blog &#8212; July 28, 2011\" \/>\n<meta name=\"twitter:description\" content=\"According to Sean McKessy, the head of Securities and Exchange Commission\u2019s Whistleblower Office, the agency has a $453 million fund from which to award &#8212; July 28, 2011\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Whistleblowers to Be Awarded from $453 Million SEC Fund &#8212; 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