FTC Halts Growth Cave’s Business Opportunity and Credit Repair Scam

Mar 7, 2025 | KLF Blog

FTC Halts Growth Cave’s Business Opportunity and Credit Repair Scam //

A federal court has temporarily halted the operations of Growth Cave, a business opportunity and credit repair scam that has operated since at least 2020.

The Federal Trade Commission (FTC) filed a complaint against Growth Cave and its owners—Lucas Lee-Tyson (“Lee-Tyson”), Osmany Batte, a/k/a Ozzie Blessed (“Batte”), and Jordan Marksberry—alleging that the operation took approximately $50 million from consumers using false promises of substantial income.

False Promises and Misleading Marketing

According to the FTC, Growth Cave promoted its primary scheme, known as the Knowledge Business Accelerator (“KBA”), through YouTube ads, which claimed consumers could earn $20,000 to $50,000 in passive income by developing and marketing a so-called “digital education program.”

In videos cited in the complaint, Lee-Tyson guaranteed to consumers that “It is literally IMPOSSIBLE to fail…”

Lee-Tyson portrayed himself as a marketing expert and self-made millionaire, while Batte implied his role included fixing negative “mindsets” and referenced his certification in hypnosis.

According to the complaint, consumers who reached out for more information were subjected to email marketing reinforcing deceptive claims and were urged to schedule a “strategy call” with a Growth Cave employee.

Growth Cave employees allegedly promised consumers would start making money within four to six weeks and offered a $10,000 profit guarantee that they were told would ensure they recouped the money they spent to buy the KBA business opportunity.

Expensive Upgrades with No Returns

Consumers paid thousands of dollars for the KBA program, but soon discovered Growth Cave’s promises were empty. Many reported difficulties reaching Growth Cave employees and obtaining assistance.

Instead of developing customized advertisements, Growth Cave, allegedly, provided generic scripts that required significant revision before they could be used. Even after fulfilling previously undisclosed requirements to launch their courses, many consumers reported they were unable to earn the promised income.

Growth Cave also, according to the FTC, sold an “upgraded” version of KBA, called Digital Freedom Mastermind (“DFM”) for an additional $30,000 to $50,000 in which all the work to create an educational course was supposedly completed by Growth Cave on consumers’ behalf. Consumers who purchased this supposed upgrade reported that the promised services never materialized.

According to the complaint, in most cases, KBA purchasers, including those who paid for the DFM upsell, did not make a single sale and, therefore, did not earn any income. Instead, they found themselves owing thousands of dollars to Growth Cave, credit card companies, or third-party lenders, prompting numerous consumer complaints.

Additional Business Opportunity Scams

Growth Cave also operated the Cashflow Consultant Academy (“CCA”), which claimed to teach purchasers to close new sales for “wealthy business owners” to generate significant monthly income.

Allegedly, those endorsing the program in video advertisements talking about their own successes were Growth Cave employees, which was never disclosed.

Consumers who paid as much as $6,800 for the CCA program often reported never being placed with a client, and in rare cases where they were, the client was another consumer caught up in Growth Cave’s KBA scheme. Most CCA purchasers never earned any income or profit.

In 2023, Growth Cave launched Buffalo Bridge, a credit repair operation targeting consumers who had already purchased its other bogus schemes. Buffalo Bridge claimed to provide credit repair services and 0% interest business loans, but it merely signed consumers up for multiple business credit cards. Growth Cave, allegedly, charged $6,800 unlawfully upfront for this supposed service.

Continued Operations Under New Names

Despite facing multiple private lawsuits from consumers, allegedly, Lee-Tyson and Batte continued launching new business opportunity schemes.

After announcing a “rebrand” in March 2024, Lee-Tyson began selling PassiveApps, a supposed AI-fueled program, which, allegedly, followed the same blueprint as KBA, with supposed full-service upgrades available for thousands of dollars.

Allegedly, Lee-Tyson even deceptively re-used the exact same “testimonials” provided by KBA purchasers to advertise PassiveApps.

Additionally, Batte began promoting ApexMind, a program similar to CCA, using many of the same deceptive tactics, including the prior bogus testimonials, according to the complaint.

The FTC’s complaint charges Growth Cave and its operators with violating the FTC Act, the Business Opportunity Rule, the Credit Repair Organizations Act, and the Reviews and Testimonials Rule.

Source: FTC.gov

About Kehoe Law Firm, P.C.

Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action law firm dedicated to protecting investors and consumers from fraud and misconduct. Our attorneys have served as Lead or Co-Lead Counsel in major securities cases, recovering over $10 billion for institutional and individual investors. We litigate securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations, while also representing whistleblowers and advocating for victims of data breaches, consumer fraud, vehicle and product defects, employment law violations, retirement plan mismanagement, and other corporate and business misconduct. With a results-driven approach, we pursue justice and substantial recoveries for those we represent.

KLF’s class action legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses. 

 

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CFPB’s New Rule Limits Medical Debt in Credit Reports – What Consumers Need to Know

Mar 6, 2025 | KLF Blog

CFPB’s New Rule Limits Medical Debt in Credit Reports – What Consumers Need to Know //

On January 7, 2025, the Consumer Financial Protection Bureau (“CFPB”) issued a final rule under the Fair Credit Reporting Act (“FCRA”) that significantly restricts how medical debt information is used in credit decisions.

This CFPB Medical Debt Rule (“Prohibition on Creditors and Consumer Reporting Agencies Concerning Medical Information”) aims to prevent medical debt from unfairly impacting credit approvals and credit scores. The rule removes certain exceptions that previously allowed creditors and consumer reporting agencies (“CRAs”) to consider medical debt when determining credit eligibility.

Read the Executive Summary of the FCRA Medical Information Rule here.

Key Changes Under the Medical Debt Rule

The final rule introduces several major changes:

  1. Creditors Are Prohibited from Using Medical Debt in Credit Decisions

The rule removes an existing exception that previously allowed creditors to obtain and use medical information—including medical debt details—when evaluating credit eligibility.

  • Creditors can no longer factor in medical debt when determining whether to approve or deny credit.
  • Medical devices cannot be used as collateral for loans.
  • Lenders cannot request medical debt information from consumers on loan applications.
  • These restrictions apply regardless of how the creditor learns about the medical debt—whether through credit reports, applications, or other means.
  1. Consumer Reporting Agencies Face New Limits on Furnishing Medical Debt Information

Under the rule, CRAs—such as Equifax, Experian, and TransUnion—are restricted in how they report medical debt information to creditors.

  • CRAs can no longer include medical debt information in credit reports unless they have reason to believe the creditor is legally permitted to use it.
  • If state laws prohibit creditors from considering medical debt, CRAs must comply and not furnish that data.
  • This restriction applies to medical bills, repayment terms, and collection actions related to medical debt.
  1. New & Revised Exceptions for Credit Eligibility Considerations

While the rule broadly restricts medical debt use in credit decisions, there are limited exceptions:

  • Consumer-Authorized Transactions: If a consumer explicitly authorizes access to medical expenses in their financial accounts (e.g., checking accounts, credit cards), creditors may use this data for cash-flow underwriting.
  • Medical-Related Income & Benefits: Consumers can still report medical-related benefits as income for loan applications. This includes:
    • Disability benefits
    • Workers’ compensation payments
    • Other medical-related financial benefits
  • Legal Compliance: If a creditor is required by law (such as Regulation Z’s ability-to-repay requirements), they may use medical debt information to comply with those regulations.

Why This Rule Matters for Consumers

This CFPB Medical Debt Rule is designed to:

✅ Protect consumers from being unfairly denied credit due to medical debt.
✅ Ensure credit decisions are based on financial stability rather than unexpected medical expenses.
✅ Reduce the impact of inaccurate medical debt reporting on credit scores.
✅ Prevent lenders from using medical devices as collateral for loans.

Who Is Affected by the CFPB Medical Debt Rule?

The rule applies to:

  • Creditors & lenders – Any institution using consumer credit reports for lending decisions.
  • Consumer reporting agencies – Equifax, Experian, TransUnion, and any CRA furnishing credit reports to creditors.
  • Consumers with medical debt – Individuals struggling with medical bills may now see less impact on their credit reports.

When Does the Rule Take Effect?

The final rule takes effect 60 days after publication in the Federal Register.

Final Thoughts

The CFPB Medical Debt Rule represents a major shift in credit reporting and lending practices. If a creditor or credit bureau violates these new medical debt protections, you may have legal recourse.

Feel free to send us a message or contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], for a free, no-obligation evaluation of potential legal claims.

About Kehoe Law Firm, P.C.

Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action law firm dedicated to protecting investors and consumers from fraud and misconduct. Our attorneys have served as Lead or Co-Lead Counsel in major securities cases, recovering over $10 billion for institutional and individual investors. We litigate securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations, while also representing whistleblowers and advocating for victims of data breaches, consumer fraud, vehicle and product defects, employment law violations, retirement plan mismanagement, and other corporate and business misconduct. With a results-driven approach, we pursue justice and substantial recoveries for those we represent.

KLF’s class action legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses. 

 

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Contact Us

ADDRESS

Kehoe Law Firm, P.C.
2001 Market Street
Suite 2500
Philadelphia, PA 19103

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Ford EcoSport Recall of 18,648 Vehicles Due to Possibility of Front Axle Shaft Disconnecting

Mar 6, 2025 | KLF Blog

Kehoe Law Firm, P.C. is notifying consumers that the possibility of front axle shafts disconnecting has led to a recall by Ford Motor Company (Ford) of certain 2021-2022 Ford EcoSport vehicles.

The front axle half shafts of the recalled Ford EcoSport vehicles may disconnect from the transmission, which can result in a loss of drive power.

A loss of drive power increases the risk of a crash. In addition, a disconnected half shaft can result in a vehicle rollaway if the parking brake is not applied, increasing the risk of a crash or injury.

Vehicles Affected by the Recall 

The recall impacts the following vehicles:

  • 2021-2022 Ford EcoSport

Recall Remedy

Dealers will inspect and replace the half shafts as necessary, free of charge. Owner notification letters are expected to be mailed April 7, 2025.

Additional Recall Details

More information about the recall can be found in the following official documents:

How to Check if Your Vehicle Has Been Recalled

To determine if your vehicle is subject to this recall, please click Check for Recalls to easily search vehicles, car seats, tires and other equipment for safety recalls, investigations, complaints and manufacturer communication.

Questions About A Vehicle Defect or Recall?

Vehicle owners and lessess affected by automotive defects or safety recalls are encouraged to contact Kehoe Law Firm, P.C. by sending us a message below or contacting Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], for a free, no-obligation evaluation of potential legal claims.

About Kehoe Law Firm, P.C. 

Kehoe Law Firm, P.C is a nationally recognized, plaintiff-side class action firm dedicated to protecting investors and consumers from fraud and misconduct. Our attorneys have served as Lead or Co-Lead Counsel in major securities cases, recovering over $10 billion for institutional and individual investors. We litigate securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations, while also representing whistleblowers and advocating for victims of data breaches, consumer fraud, vehicle and product defects, employment law violations, retirement plan mismanagement, and other corporate and business misconduct. With a results-driven approach, we pursue justice and substantial recoveries for those we represent.

Our class action legal services are on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses.

Lincoln Navigator Exterior Side Mirror Fire Risk Leads to Recall by Ford of 35,328 Vehicles

Mar 5, 2025 | KLF Blog

Kehoe Law Firm, P.C. is notifying consumers that an increased risk of fire due to a short circuit of the LED logo lights on certain Lincoln Navigator exterior side mirror assemblies has caused the Ford Motor Company (“Ford”) to initiate a recall of 35,328 vehicles, including certain 2015-2017 Lincoln Navigators.  

Affected Lincoln Navigator Vehicles

The recall impacts the following vehicles:

  • 2015-2017 Lincoln Navigators 

Short Circuit of Lincoln Navigator Exterior Side Mirror Assemblies Increases Risk of Fire

The light-emitting diode (LED) logo lamps within the driver side and passenger side exterior mirror assemblies may short circuit without tripping the short detection threshold. An electrical short in the exterior mirror increases the risk of fire. 

Recall Remedy

Owners will be notified by mail and instructed to take their vehicle to a Ford or Lincoln dealer to cut and disconnect the power wire to the LED logo lamp. There will be no charge for this service.

Ford provided the general reimbursement plan for the cost of remedies paid for by vehicle owners prior to notification of a safety recall in May 2023.

Owners who have paid to have these repairs completed at their own expense may be eligible for reimbursement, in accordance with the recall reimbursement plan on file with NHTSA.

Additional Recall Details

More information about the recall (Ford recall 25S08) can be found in the following official documents:

How to Check if Your Vehicle Has Been Recalled

To determine if your vehicle is subject to this recall, please click Check for Recalls to easily search vehicles, car seats, tires and other equipment for safety recalls, investigations, complaints and manufacturer communication.

Questions About A Vehicle Defect or Recall?

Vehicle owners and lessess affected by automotive defects or safety recalls are encouraged to contact Kehoe Law Firm, P.C. by sending us a message below or contacting Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], for a free, no-obligation evaluation of potential legal claims.

About Kehoe Law Firm, P.C. 

Kehoe Law Firm, P.C is a nationally recognized, plaintiff-side class action firm dedicated to protecting investors and consumers from fraud and misconduct. Our attorneys have served as Lead or Co-Lead Counsel in major securities cases, recovering over $10 billion for institutional and individual investors. We litigate securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations, while also representing whistleblowers and advocating for victims of data breaches, consumer fraud, vehicle and product defects, employment law violations, retirement plan mismanagement, and other corporate and business misconduct. With a results-driven approach, we pursue justice and substantial recoveries for those we represent.

Our class action legal services are on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses.

FTC Joint Labor Task Force Formed to Combat Unfair Labor Practices

Mar 3, 2025 | KLF Blog

FTC Joint Labor Task Force Formed to Protect American Workers //

In a significant move to combat deceptive, unfair, and anticompetitive labor practices, the Federal Trade Commission (FTC) has announced the formation of a Joint Labor Task Force.

This initiative, led by FTC Chairman Andrew N. Ferguson, brings together the Bureau of Competition, Bureau of Consumer Protection, Bureau of Economics, and Office of Policy Planning to investigate, prosecute, and develop policies aimed at protecting American workers.

The directive acknowledges that a fair and competitive labor market is crucial to the country’s economic success. The memorandum highlights that many labor practices harm workers’ ability to earn fair wages, advance their careers, and find better opportunities. The FTC has therefore committed to taking strong enforcement actions against businesses engaging in anticompetitive labor market conduct.

Key Areas of Focus

The Joint Labor Task Force will prioritize the investigation and prosecution of deceptive and unfair labor practices, including:

  1. No-Poach, Non-Solicitation, and No-Hire Agreements

These agreements restrict workers from seeking better employment by preventing businesses from hiring competitors’ employees. Courts have ruled that these agreements can be per se violations of competition laws.

  1. Wage-Fixing Agreements

Employers who collude to fix wages artificially lower employee earnings. This is a severe violation of competition laws and will be a major focus of the task force.

  1. Noncompete Agreements

Many employers use overly restrictive noncompete clauses to prevent workers from switching jobs within the same industry. These agreements limit career mobility and suppress wages, making them a priority for FTC enforcement.

  1. Deceptive Job Advertising and Misleading Business Opportunities

The task force will target misleading job postings that lure job seekers with false promises of high wages or benefits. Additionally, deceptive business opportunities and misleading franchise offerings that trick individuals into investing in fraudulent ventures will be investigated.

  1. Collusion on DEI Metrics

The FTC is also examining unlawful coordination on Diversity, Equity, and Inclusion (DEI) hiring metrics. If companies coordinate in ways that unfairly exclude workers based on race, sex, or sexual orientation, they may be violating competition laws.

  1. Gig Economy Exploitation

The task force will address unfair and deceptive practices targeting gig workers, ensuring that independent contractors receive fair pay and treatment.

  1. Harmful Occupational Licensing Requirements

Certain licensing restrictions create unnecessary barriers to entry for workers in specific industries. The FTC will investigate whether these requirements are being used to limit competition unfairly.

  1. Job and Online Work Scams

The FTC will crack down on fraudulent job placement schemes and online task scams that trick job seekers into paying fees or performing unpaid labor.

  1. Labor Market Monopsonies

In some regions, a single employer or group of employers may dominate the labor market, reducing worker bargaining power. The task force will examine these cases to ensure fair competition.

Why This Matters for American Workers

The FTC memorandum underscores that unfair labor practices have widespread negative effects on the U.S. economy.

Key concerns include:

✔ Lower Wages – Workers earn less when competition among employers is restricted.
✔ Reduced Job Mobility – Unfair agreements lock employees into jobs and prevent career advancement.
✔ Increased Worker Exploitation – Deceptive and anticompetitive practices harm workers across all industries.
✔ Economic Instability – Suppressing wages and employment opportunities harms economic growth and consumer spending.

FTC’s Strategy and Next Steps

To enforce fair labor standards, the FTC has directed its Bureaus to work together under the Joint Labor Task Force.

Key responsibilities include:

  • Prioritizing labor market investigations and prosecutions under consumer protection and competition laws.
  • Coordinating enforcement actions across multiple FTC divisions.
  • Developing research and data-sharing initiatives to identify labor market abuses.
  • Engaging in public outreach to educate workers on their rights and encourage reporting of unfair practices.
  • Identifying legislative and regulatory opportunities to promote fair labor competition.

The task force will meet monthly to assess ongoing investigations and report quarterly to the FTC Chairman.

Conclusion

The launch of the FTC Joint Labor Task Force marks a major step toward protecting American workers from unfair employment practices. By targeting wage-fixing, noncompete agreements, deceptive job advertising, and labor market monopolization, the FTC aims to restore fairness and transparency to the labor market.

To read Chairman Ferguson’s memorandum, click “Directive Regarding Labor Markets Task Force.”

Take Action and Protect Yourself From Antitrust Violations – Know Your Rights 

The antitrust laws prohibit harmful, anticompetitive practices to promote fair competition and better job opportunities.

If you believe your employer has been engaging in unlawful wage-fixing, no-poach agreements or other prohibited conduct, send us a message or contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], for a free, no-obligation evaluation of potential legal claims. 

About Kehoe Law Firm, P.C.

Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action law firm dedicated to protecting investors and consumers from fraud and misconduct. Our attorneys have served as Lead or Co-Lead Counsel in major securities cases, recovering over $10 billion for institutional and individual investors. We litigate securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations, while also representing whistleblowers and advocating for victims of data breaches, consumer fraud, vehicle defects, employment law violations, retirement plan mismanagement, and other corporate and business misconduct. With a results-driven approach, we pursue justice and substantial recoveries for those we represent.

KLF’s class action legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses. 

 

SEND US A MESSAGE

Contact Us

ADDRESS

Kehoe Law Firm, P.C.
2001 Market Street
Suite 2500
Philadelphia, PA 19103

PHONE

Tel: 215-792-6676

EMAIL

[email protected]

SEC Whistleblower Program – Reporting Securities Fraud and Financial Rewards

Mar 3, 2025 | KLF Blog

SEC Whistleblower Program Explained: How It Works & Benefits //

The SEC Whistleblower Program (“SEC Whistleblower Program”) was established by Congress to incentivize whistleblowers to report specific, timely and credible information about possible federal securities laws violations.

Whistleblowers who provide original, high-quality information that leads to a successful enforcement action may be eligible for financial rewards ranging from 10% to 30% of the money collected when the monetary sanctions exceed $1 million.

In May 2023, the U.S. Securities and Exchange Commission (“SEC”) announced the largest-ever award, nearly $279 million, to a whistleblower whose information and assistance led to the successful enforcement of SEC and related actions. This is the highest award in the SEC’s whistleblower program’s history, more than doubling the $114 million whistleblower award the SEC issued in October 2020.

In FY 2024, the SEC awarded over $255 million to 47 whistleblowers, marking the third-highest annual total in the program’s history.

According to the SEC Office of the Whistleblower Annual Report to Congress for FY 2024, more than $2.2 billion has been awarded by the SEC to 444 individual whistleblowers since the SEC Whistleblower Program’s inception in 2011.

Whistleblower Confidentiality

Confidentiality is a cornerstone of the SEC Whistleblower Program. Under the Dodd-Frank Act, the SEC is prohibited from disclosing any information that could reasonably be expected to reveal a whistleblower’s identity, except under limited circumstances.

To protect whistleblowers, the SEC redacts identifying details from public award orders, including names, enforcement action details, and award percentages.

Who Can Be a Whistleblower?

Anyone with credible, original information about violations of federal securities laws can be a whistleblower. This includes employees, investors, industry insiders, and others who witness misconduct.

The SEC allows anonymous reporting if the whistleblower is represented by an attorney.

Even individuals involved in the misconduct may be eligible for an award, though their participation could impact the reward amount.

Whistleblowers can be either insiders (such as current or former employees of the violating entity) or outsiders (such as investors, competitors, or market analysts). In FY 2024, 38% of whistleblowers who received awards were outsiders, while 62% were insiders.

What Information Can I Submit to the SEC?

The SEC investigates possible violations of federal securities laws. The more specific, credible, and timely a whistleblower tip, the more likely it is that the tip will be forwarded to investigative staff.

High-quality tips include:

  • Identifying individuals involved in the scheme
  • Providing examples of fraudulent transactions
  • Submitting non-public materials evidencing fraud

The SEC does not have jurisdiction over matters outside federal securities laws but may refer cases to other regulatory agencies when appropriate.

Examples of misconduct the SEC investigates include:

  • Ponzi schemes, pyramid schemes, or high-yield investment programs
  • Theft or misappropriation of funds or securities
  • Manipulation of a security’s price or volume
  • Insider trading
  • Fraudulent or unregistered securities offerings
  • False or misleading statements about a company (including SEC reports or financial statements)
  • Abusive naked short selling
  • Bribery of, or improper payments to, foreign officials
  • Fraudulent conduct associated with municipal securities transactions or public pension plans
  • Initial Coin Offerings and cryptocurrency fraud

Independent Knowledge and Independent Analysis

To be eligible for an award, whistleblowers must provide “original information” derived from either:

  • Independent knowledge – Firsthand, non-public information obtained through personal experiences, observations, or communications.
  • Independent analysis – Examining publicly-available data in a way that uncovers previously unknown violations.

In FY 2024, the SEC granted four awards based on independent analysis and 37 awards based on independent knowledge.

Protections for Whistleblowers

The SEC Whistleblower Program provides strong protections against employer retaliation.

Employers cannot fire, demote, suspend, or harass employees for reporting violations. Whistleblowers who experience retaliation may have legal recourse, including job reinstatement and compensation for damages.

How to Report Securities Fraud to the SEC

To report fraud under the SEC Whistleblower Program:

  1. Gather Evidence – Collect documents, emails, or records supporting your claim. The SEC values high-quality, original information.
  2. Submit a Tip – Use the SEC’s Tips, Complaints and Referrals Portal or Form TCR (Tip, Complaint, or Referral). A properly submitted Form TCR is required for a whistleblower award.
  3. Work with an Attorney – An experienced whistleblower attorney can guide you and protect your rights. Whistleblowers wishing to remain anonymous must be represented by an attorney.
  4. Stay Updated – The SEC may contact you for additional information or updates on your case. Continued cooperation may maximize award chances.

Determining Whistleblower Awards

The SEC determines award percentages based on several factors:

Factors That May Increase an Award:

  • Significance of Information – More valuable information leads to higher awards.
  • Assistance Provided – Helping SEC staff decipher transactions or provide key evidence can increase awards.
  • Law Enforcement Interest – Reports of ongoing violations harming investors may receive priority.
  • Internal Compliance Participation – While not required, internal reporting can increase award percentages.

Factors That May Decrease an Award:

  • Unreasonable Reporting Delay – Waiting too long to report a violation may reduce the award.
  • Culpability – Whistleblowers involved in misconduct may receive reduced payouts.
  • Interference with Internal Reporting Systems – Undermining internal compliance may lower an award.

Maximum Whistleblower Award Presumption

Under the 2020 Whistleblower Rule Amendments, whistleblowers are presumed eligible for the maximum 30% award if:

  • The total award does not exceed $5 million.
  • The claimant has no negative factors (e.g., culpability or delay).
  • The claim does not involve whistleblowers engaged in misconduct.

In FY 2024, the SEC applied this presumption in 90% of cases where the maximum award was $5 million or less.

Why Report Securities Violations?

By participating in the SEC Whistleblower Program, individuals help combat fraud, hold violators accountable, and protect investors. With over $2.2 billion awarded to 444 whistleblowers since 2011, the program plays a critical role in exposing wrongdoing.

If you have information about securities fraud, consider consulting a legal professional before submitting a tip.

Learn more about the SEC Whistleblower Program by visiting the SEC’s official Whistleblower FAQ page.

Do You Have Questions or Concerns About Whistleblower Reporting of Securities Fraud to the SEC?

Making the decision to come forward as a whistleblower and report securities fraud to the SEC can be challenging. At Kehoe Law Firm, P.C., our legal team understands the complexities involved and has extensive experience investigating fraud, prosecuting wrongdoing, and working with individuals who bravely expose securities violations.

If you have questions about voluntarily providing information to the SEC as a whistleblower—whether regarding eligibility for a whistleblower award, the reporting process, or the required submission format—please contact Kehoe Law Firm, P.C.

To speak directly with an attorney and receive a free, no-obligation legal consultation, please contact:

Michael Yarnoff, Esq. – [email protected], [email protected] | (215) 792-6676, Ext. 804, or
John Kehoe, Esq. – [email protected], [email protected] | (215) 792-6676, Ext. 801.

Your courage in whistleblower reporting of securities fraud helps protect investors and uphold market integrity. Kehoe Law Firm is here to guide you every step of the way.

About Kehoe Law Firm, P.C.

Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action law firm dedicated to protecting investors and consumers from fraud and misconduct. Our attorneys have served as Lead or Co-Lead Counsel in major securities cases, recovering over $10 billion for institutional and individual investors. We litigate securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations, while also representing whistleblowers and advocating for victims of data breaches, consumer fraud, vehicle defects, employment law violations, retirement plan mismanagement, and other corporate and business misconduct. With a results-driven approach, we pursue justice and substantial recoveries for those we represent.

KLF’s class action legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses. 

    SEND US A MESSAGE

    Contact Us

    ADDRESS

    Kehoe Law Firm, P.C.
    2001 Market Street
    Suite 2500
    Philadelphia, PA 19103

    PHONE

    Tel: 215-792-6676

    EMAIL

    [email protected]