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SEC Whistleblower Program Review of Year One

Under the Dodd-Frank Act, whistleblowers who provide original information to the Securities and Exchange Commission (SEC) that leads to a successful enforcement action resulting in a penalty of one million dollars  ($1,000,000) or more are entitled to a reward of 10% to 30% of the penalty. The information can relate to actual or potential fraud.  The SEC has been receiving an average of 8 tips per day from whistleblowers in the United States and many foreign countries.

Not surprisingly, the quality of the information received helps determine whether and how quickly the SEC acts.  An attorney experienced in securities law cases as well as whistleblower cases can be extremely helpful in making sure the whistleblower's information is presented to the SEC in the most useful and compelling manner.

One year after setting up the office that handles these matters, the SEC issued its first award to a whistleblower.  That person did not want his identity to be made public. He received $50,000, which was 30% of the amount the government has obtained to date from the fraud he revealed. He will receive additional monies if the government collects any additional sums from the wrongdoer.

Insiders believe this is just the beginning, and that many larger, more significant awards will be made in 2013.

When the whistleblower office was set up in 2011, there was a concern that the SEC would not be able to handle the number of complaints expected.  The SEC, however, has been able to continue its on-going responsibilities and also to handle whistleblower complaints.

If you have discovered evidence of government fraud, contact an experienced False Claims Act attorney before blowing the whistle. You may be entitled to a substantial reward and the legal protections afforded to whistleblowers under state and federal laws. The attorneys of Berger & Montague are nationally recognized experts in Whistleblower/Qui Tam actions with over a decade of experience pursuing these complex fraud cases. For more information or to schedule your confidential consultation, use the form on this page or call us at 1-800-424-6690.

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