{"id":6011,"date":"2016-06-29T00:00:00","date_gmt":"2016-06-29T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2016\/06\/securities_headlines_sec_annou"},"modified":"2022-05-18T15:10:21","modified_gmt":"2022-05-18T20:10:21","slug":"securities-headlines-sec-annou","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/securities-headlines-sec-annou\/","title":{"rendered":"Securities Headlines: SEC Announces $17M Whistleblower Lawsuit, Delta Employees File 401(K) Lawsuit Against Fidelity, Blackstone President Says Hedge Funds Could See 25% Asset Loss, and Deutsche Bank is Fined $6M By FINRA"},"content":{"rendered":"<p><strong>SEC Issues Its Second Largest Whistleblower Award <\/strong><br \/>\nU.S. Securities and Exchange Commission has awarded the ex-employee of a company more than $17M for a whistleblower tip that helped move the regulator\u2019s probe forward, ultimately resulting in a successful enforcement action against that company. This is the second largest award that the regulator has issued since it started its whistleblower program in 2011. <\/p>\n<p>To date, the program has awarded over $85M to 32 whistleblowers. The largest SEC whistleblower award so far has been $30M and it was issued in 2014. In the last five months alone, five whistleblowers have been awarded over $26M.<\/p>\n<p>Under the SEC whistleblower program, whistleblowers may be entitled to receive a monetary  award if the information they\u2019ve voluntarily given the regulator is original and helpful, resulting in an enforcement action, and the monetary sanction arrived at is greater than $1M. In such cases the whistleblower may be entitled to 10-30% of the funds collected. The payments come out of an investor protection fund paid for by monetary sanction payments issued to the SEC for securities law violations.<\/p>\n<p>\n<strong>Delta 401(K) Participants File Lawsuit Against Fidelity<\/strong><br \/>\nFidelity Investment units are now defendants in a 401(K) lawsuit filed by participants in a Delta Air Lines Inc. retirement plan. The plaintiffs want class action status.<\/p>\n<p>They claim that Financial Engines, which was retained to give investment advice to the Delta Family-Care Savings Plan, is paying Fidelity a substantial chunk of the fees it receives from the 401(k) plan members. This has purportedly inflated the cost of investment advice services that are essential to the plan and is a violation of Fidelity\u2019s fiduciary duty. They also claim that Fidelity\u2019s management of BrokerageLink, a self-directed brokerage account, acquires share classes with high expense ratios that pay the broker dealer significant revenue-sharing payments. The plaintiffs believe Fidelity is \u201ceffectively\u201d utilizing the assets of the plan to its benefit. <\/p>\n<p>Fidelity claims the allegations are meritless.<\/p>\n<p>\n<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/securities-headlines-sec-annou\/#more-6011\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>SEC Issues Its Second Largest Whistleblower Award U.S. Securities and Exchange Commission has awarded the ex-employee of a company more than $17M for a whistleblower tip that helped move the regulator\u2019s probe forward, ultimately resulting in a successful enforcement action against that company. This is the second largest award that the regulator has issued since [&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":[3818,3752,3748,3760,3761,3938],"tags":[3639],"class_list":["post-6011","post","type-post","status-publish","format-standard","hentry","category-deutsche-bank","category-financial-firms","category-hedge-funds","category-sec-enforcement","category-securities-and-exchange-commis","category-whistleblowers","tag-blackstone"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Securities Headlines: SEC Announces $17M Whistleblower Lawsuit, Delta Employees File 401(K) Lawsuit Against Fidelity, Blackstone President Says Hedge Funds Could See 25% Asset Loss, and Deutsche Bank is Fined $6M By FINRA &#8212; Investor Lawyers Blog &#8212; June 29, 2016<\/title>\n<meta name=\"description\" content=\"SEC Issues Its Second Largest Whistleblower Award U.S. Securities and Exchange Commission has awarded the ex-employee of a company more than $17M for a &#8212; June 29, 2016\" \/>\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\/securities-headlines-sec-annou\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Securities Headlines: SEC Announces $17M Whistleblower Lawsuit, Delta Employees File 401(K) Lawsuit Against Fidelity, Blackstone President Says Hedge Funds Could See 25% Asset Loss, and Deutsche Bank is Fined $6M By FINRA &#8212; Investor Lawyers Blog &#8212; June 29, 2016\" \/>\n<meta name=\"twitter:description\" content=\"SEC Issues Its Second Largest Whistleblower Award U.S. Securities and Exchange Commission has awarded the ex-employee of a company more than $17M for a &#8212; 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