Jan. 23, 2020 — The Securities and Exchange Commission has announced a whistleblower award of $277,000 to a Phillips & Cohen client who provided the SEC with significant information that allowed the SEC to stop a fraud scheme targeting retail investors.
“We’re proud of our client for stepping forward to help the SEC shut down this fraud scheme that preyed on investors,” said Erika Kelton, a whistleblower attorney and partner with Phillips & Cohen LLP. “This case shows how important whistleblowers are for SEC enforcement.”
In a separate case, the SEC awarded $45,000 to a whistleblower who was a harmed investor in the scheme the whistleblower reported.
“Both whistleblowers awarded today played a crucial role in helping the Commission protect Main Street investors,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “The information provided saved the SEC time and resources in conducting the investigations and assisted the SEC in returning money to harmed investors.”
Phillips & Cohen has won four SEC awards for its clients to date, including one of the largest awards ever made under SEC’s whistleblower program. In that case, the SEC awarded an international client of the firm’s more than $32 million. The whistleblower’s information exposed and helped stop a massive securities fraud scheme.
Since the whistleblower program was created in 2010 through the Dodd-Frank Act, the SEC has awarded approximately $387 million to 72 people.
Whistleblowers who report financial misconduct to the SEC are entitled to protection from retaliation and anonymity, as well as substantial rewards if the government collects over $1 million as a result of the whistleblower’s information. Whistleblowers will receive 10 percent to 30 percent of the amount collected, based on the SEC’s assessment.
If you are aware of securities law violations and are considering filing a whistleblower claim, contact Phillips & Cohen for a free, confidential review of your matter.
Phillips & Cohen is the nation’s most successful law firm representing whistleblowers. The firm’s cases have helped federal, state and local governments recover more than $12.3 billion in civil settlements and criminal fines.