The U.S. Securities and Exchange Commission (SEC) issued a $2.5 million whistleblower award to a whistleblower who voluntarily disclosed original information which led to a successful enforcement action. According to the SEC’s award order, “After internally reporting concerns, Claimant submitted a tip to the Commission that prompted the opening of the investigation and thereafter provided continuing assistance to the staff.” The SEC order further says that while the whistleblower learned of the misconduct in a role where their principal duties involve compliance or internal audit responsibilities, they were eligible for an award because “Claimant reported the information internally to Claimant’s supervisor and to the Chief Compliance Officer or its equivalent, and then waited at least 120 days to report the information to the Commission.”

Jeffrey Newman is a whistleblower lawyer and former reporter, whose firm represents whistleblowers in healthcare fraud cases under the False Claims Act (FCA) and also under the Securities and Exchange, FINCEN and CFTC whistleblower programs. He can be reached at Jeff@JeffNewmanLaw.com or at 617-823-3217