How Do I Apply for a Whistleblower Award from the SEC?
Part of what encourages whistleblowers to report their tips to the Securities and Exchange Commission (SEC) is the ability to collect an award if the information they’ve provided enables the SEC to apply enforceable action on the violating corporation or individual. The awards whistleblowers can receive can be quite substantial.
If you’ve provided a tip to the SEC and believe you might be eligible to collect an award, continue reading to discover how you’ll go about gaining access to the reward you’re entitled to.
The Notices of Covered Action
If you think your tip could have qualified you for a whistleblower award, keep an eye on the SEC website for the commission’s Notices of Covered Action. This is a routinely updated list of final judgements regarding sanctions against securities violations that have resulted in monetary action of at least $1 million.
If you notice that the corporation or individual involved in your tip is included on this list, you could be an eligible award-winning whistleblower. While not guaranteed, the Notices of Covered Action will at least notify anonymous whistleblowers that action has been taken and that their tip could have been crucial to the success of the case.
For you to be eligible for an award, you need to meet some specific criteria. Your tip must be original. This means you must have gotten your information from a source that wasn’t made public. It also means you need to be the first one to provide the tip.
If multiple people in your office discovered the violation, act quickly because chances are high that another possible whistleblower has already made a call to the SEC in the hope of securing an award.
The commission needs to be notified of your tip voluntarily. If it has already begun interviewing your colleagues about potential violations, you need to come forward swiftly—before your interview is even a thought. In addition, your tip needs to be important to the case. If your report can directly lead to enforceable action by the SEC, you’ll likely be on your way to an award.
For a whistleblower to win an award, the SEC must be able to recover at least $1 million in sanctions. If the commission has been unable to impose sanctions of of $1 million, you will not be able to collect an award. If the SEC does recover the right amount based on your tip, however, you could be entitled to anywhere between 10 and 30 percent, depending on how impactful your tip was.
Get in Touch with an SEC Whistleblower Lawyer
Are you a whistleblower who is anxious to find out whether your tip enables you to collect an award? If so, reach out to an SEC whistleblower lawyer at Meissner Associates today.
We can help you determine whether enforceable action was taken against the corporation or individual you reported and begin the process of claiming your award if you meet the eligibility criteria. Give us a call at 1-866-764-3100 or fill out the quick contact form below to schedule your free case evaluation.