Factors That Will Reduce an SEC Whistleblower Award
Making the decision to become a whistleblower can be life-changing. You will have done your part in putting a stop to a securities law violation, and you’ll have contributed to the protection of investor funds and secured the integrity of the corporation you were employed with.
Once it has been established that you meet the eligibility criteria for a Securities and Exchange Commission (SEC) whistleblower award, the commission will determine what percentage of the recovered sanctions you are entitled to.
Certain circumstances, however, can dramatically reduce the amount you collect as a whistleblower. Your level of participation in the fraud and interfering in the SEC investigation can negatively influence the amount you receive.
If You Participated in the Fraud
Your involvement in the securities violation will have an impact on the amount you are awarded. Willful participants can expect to have their award drastically reduced—if an award is issued at all.
Whistleblowers who unknowingly played a role in fraudulent activity or did so under pressure from their superiors are likely to have their awards diminished by very little. This is especially due to the whistleblower being willing to come forward once he or she has become aware or able to bring the violation to the attention of the SEC.
Interfering in an Investigation
If a whistleblower interferes in an SEC investigation in any way—by delaying vital information from becoming known, for instance, or giving the scheming corporation or individual a chance to cover up the illegal behavior—it is entirely possible that the SEC will decide that the whistleblower is not to receive an award of any amount.
In addition, a whistleblower who gets in the way of his or her company’s internal compliance programs, either by providing false information or otherwise interfering in the ability to conduct a thorough internal investigation, can expect to see his or her award reduced substantially.
Talk to an SEC Whistleblower Lawyer
Becoming an awarded whistleblower is no easy feat. If you have decided to come forward with information about a securities law violation that you’ve become aware of, you can maximize your potential award by assisting the SEC in any way you can and being sure not to interfere in the commission’s investigation or an investigation conducted by the corporation in question.
To obtain more information about the SEC and how it determines whistleblower awards, or to discuss specific details of a case you’re involved in, get in touch with a qualified SEC whistleblower lawyer with Meissner Associates today. You can schedule a free case evaluation by giving us a call at 1-866-764-3100 or filling out the secure contact form at the bottom of this page.