In 2010, in an effort to weed out fraudulent financial misconduct, Congress enacted the Dodd-Frank Wall Street Reform and Consumer Protection Act. A significant part of this reform package provided for the creation of Whistleblower Reward Program through both the Securities & Exchange Commission (SEC). The SEC Whistleblower Reward Program provides for the payment of an award ranging from 10% to 30% of the agencies’ recovery. This is a very broad range and I am often asked, “How can I ensure that I receive a maximum award?”
The SEC has issued rules for determining the amount of any award provided to whistleblowers. The rules set forth four factors which may serve to increase an award and three factors that may serve to decrease the amount of an award.
The four factors that may cause an award to be increased are as follows: 1) the significance of the information provided by the whistleblower; 2) the assistance provided by the whistleblower; 3) the law enforcement’s interest in the deterrence of future violations; and, 4) the whistleblower’s participation in internal compliance systems.
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The three factors that may cause an award to be decreased are as follows: 1) the whistleblower’s culpability in the misconduct; 2) any unreasonable delay in the reporting to the SEC; and, 3) any interference with internal compliance and reporting systems.
Weighed in their entirety, the seven factors determine the SEC’s award for original information leading to a recovery of more than $1 million. When seeking to maximize the amount of a potential award, it is very important to hire an experienced and dedicated whistleblower attorney.
Young Law Group is a nationwide leader in whistleblower representation and has successfully represented individuals in countless qui tam cases for over a decade. Young Law Group attorneys represented whistleblowers in two of the largest False Claims Act settlements in history. Our firm takes every inquiry seriously and considers confidentiality a top priority. For a free confidential consultation with one of our SEC whistleblower lawyers, please call Eric L. Young, Esquire at 1-800-590-4116 or email to eyoung@young-lawgroup.com.