May 9, 2019 | Archive
On May 6, 2019, the Commodity Futures Trading Commission (“CFTC”) announced a whistleblower award of approximately $1.5 million to be paid to an individual whistleblower. The CFTC announced that it granted the whistleblower’s award application for both a CFTC action and a related action brought by another federal regulator. In ordering the award, the CFTC recognized the contribution of a whistleblower who sought to report his or her concerns internally prior to reporting to the CFTC.
“While there is no requirement that a whistleblower report internally before approaching the Commission, today’s award demonstrates that the Commission may pay enhanced awards to those that do – that is one of the positive factors set out in our rules for the Commission to consider in making its award determination,” said Christopher Ehrman, Director of CFTC’s Whistleblower Office. “To be clear, the Commission’s rules do not require a whistleblower to undertake internal reporting efforts in order to be eligible for the benefits and protections of our program. Instead, a whistleblower can contact us directly whenever he or she wishes – and may do so anonymously.”
CFTC’s Whistleblower Program was created under Section 748 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The CFTC can pay awards not only on CFTC enforcement actions, but also on related actions brought by other federal regulators if certain conditions are met. Whistleblowers are eligible to receive between 10 and 30 percent of the monetary sanctions collected.
In addition, the program affords protections against retaliation. Employers may not take any action to impede a would-be whistleblower from communicating directly with the CFTC’s staff about possible violations of the Commodity Exchange Act (“CEA”); nor may employers discharge, demote, suspend, harass, or in any way discriminate against someone for providing information to the CFTC under the Whistleblower Program. An employee may have a private right of action, and the CFTC may bring an enforcement action against an employer for any retaliatory acts.
The CEA also provides confidentiality protections for whistleblowers. Regardless of whether the CFTC grants an award, the CFTC will not disclose any information which could reasonably be expected to reveal a whistleblower’s identity, except in limited circumstances such as when disclosure is required in connection with a public proceeding, or when the Director of the Division of Enforcement (“DOE”) exercises his/her authority to share important information with other regulators. Consistent with this confidentiality requirement, the CFTC will not disclose the name of the enforcement action in which the whistleblower provided information or the exact dollar amount of the award granted.
All whistleblower awards are paid from the CFTC Customer Protection Fund established by Congress and financed entirely through monetary sanctions paid to the CFTC by violators of the CEA. No money is taken or withheld from harmed investors to fund the program.
Since issuing its first award in 2014, through 2018, the CFTC has awarded more than $85 million to whistleblowers. DOE actions associated with those awards have resulted in sanctions orders totaling more than $675 million.
Source: CFTC.gov
Apr 4, 2019 | Archive
On March 26, 2019, the Securities and Exchange Commission announced awards totaling $50 million to two whistleblowers whose high-quality information assisted the agency in bringing a successful enforcement action. One whistleblower received an award of $37 million and the other received an award of $13 million. The $37 million award is the SEC’s third-highest award to date after the $50 million award made in March 2018 to joint whistleblowers and more than $39 million award announced in September 2018.
The SEC has awarded approximately $376 million to 61 individuals since issuing its first award in 2012. All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards. Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action. Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million.
The SEC protects the confidentiality of whistleblowers and does not disclose information that could reveal a whistleblower’s identity as required by the Dodd-Frank Act.
Source: SEC.gov
Mar 13, 2019 | Archive
Do you own a Model-Year 2011-14 Chrysler 200 Sedan; Model-Year 2011-14 Dodge Avenger Sedan; Model-Year 2011-12 Dodge Caliber Hatchback; Model-Year 2011-16 Dodge Journey SUV or Model-Year 2011-16 Jeep Compass or Patriot SUV?
If so, you are encouraged to contact Kehoe Law Firm, P.C., Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], to discuss the investigation.
On March 13, 3019, Cars.com reported that Fiat Chrysler’s recall was due to “[a]n issue with the catalytic converter [which] could adversely affect the vehicle’s emissions and, therefore, pollutants released into the air.”
As reported by The Detroit News on March 13, 2019, “[t]he U.S. Environmental Protection Agency announced Wednesday that Fiat Chrysler is voluntarily recalling 862,520 cars as a result of ‘in-use emissions investigations’ conducted by both the agency and the company. Those investigations, designed to measure the effectiveness of emission control systems in cars after some time on the road, revealed the vehicles were not meeting federal emission standards.”
The Detroit News reported the following vehicles affected by the recall:
2011-2016 Dodge Journey (Front-wheel drive);
2011-2014 Chrysler 200 / Dodge Avenger (Front-wheel drive);
2011-2012 Dodge Caliber (Front-wheel drive, CVT transmission);
2011-2016 Jeep Compass/Patriot (Front-wheel drive, CVT transmission).
Owners of Fiat Chrysler Vehicles Affected by the Recall
If you own one of the vehicles affected by Fiat Chrysler’s recall, please complete the form on the right or contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected].
Sep 25, 2018 | Archive
On September 24, 2018, the Securities and Exchange Commission announced that it has awarded nearly $4 million to an overseas whistleblower whose tip led it to open an investigation and whose extensive assistance helped it bring a successful enforcement action.
“Whistleblowers, whether they are located in the U.S. or abroad, provide a valuable service to investors and help us stop wrongdoing,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “This award recognizes the continued, important assistance provided by the whistleblower throughout the course of the investigation.”
The SEC has now awarded over $326 million to 59 individuals since issuing its first award in 2012. In that time, more than $1.7 billion in monetary sanctions have been ordered against wrongdoers based on actionable information received by whistleblowers.
Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action. Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million. All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards.
By law, the SEC protects the confidentiality of whistleblowers and does not disclose information that might directly or indirectly reveal a whistleblower’s identity.
Source: SEC.gov
Sep 19, 2018 | Archive
On September 14, 20185, the Securities and Exchange Commission announced that a whistleblower has earned an award of more than $1.5 million. The whistleblower provided the SEC with vital information and ongoing assistance that proved important to the overall success of an enforcement action. However, the SEC’s order notes that the award was reduced because the whistleblower did not promptly report the misconduct and benefited financially during the delay.
“This award reflects the value of the information while underscoring the need for individuals to come forward without delay so that our enforcement staff may quickly leverage the information and prevent further investor harm,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “This is especially critical and, as is the case here, may result in an award reduction where an individual provided valuable information but it came after receiving a benefit from the wrongdoing.”
The SEC’s whistleblower program has now awarded approximately $322 million to 58 individuals since issuing its first award in 2012. In that time, more than $1.6 billion in monetary sanctions have been ordered against wrongdoers based on actionable information received by whistleblowers.
Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action. Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million. All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards.
Source: SEC.gov
Sep 7, 2018 | Archive
On September 6, 2018, the Securities and Exchange Commission announced that it is awarding more than $39 million to one whistleblower and more than $15 million to another whose critical information and continued assistance helped the agency bring an important enforcement action. The more than $39 million award is the second-largest award in the history of the SEC’s whistleblower program.
“Whistleblowers serve as invaluable sources of information, and can propel an investigation forward by helping us overcome obstacles and delays in investigation,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “These substantial awards send a strong message about the SEC’s commitment to whistleblowers and the value they bring to the agency’s mission.”
For additional information, click the SEC’s “Order Determining Whistleblower Award Claims.”
The SEC has awarded more than $320 million to 57 individuals since issuing its first award in 2012. All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards.
Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action. Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million.
By law, the SEC protects the confidentiality of whistleblowers and does not disclose information that might directly or indirectly reveal a whistleblower’s identity.
Source: SEC.gov
