SEC Whistleblower Cases
As directed by the Dodd-Frank Wall Street Reform and Consumer Protection
Act of 2010, the Securities and Exchange Commission on May 25, 2011 adopted
final rules to implement the Dodd-Frank whistleblower program. These rules
provide for payments to persons reporting violations of the federal securities
laws of up to 30% of the monetary sanctions collected by the SEC from
violators of those laws.
As part of the most comprehensive reforms of the federal securities laws
since the enactment of the Securities Exchange Act of 1934, Dodd-Frank
established a whistleblower program that allows payments to individuals who:
- Voluntarily provide the SEC original information about a violation of the
federal securities laws, in writing…
- That leads to the successful enforcement of a covered judicial or administrative
action, or a related action resulting in monetary sanctions exceeding
The new SEC whistleblower rules define who is a whistleblower, what type
of information qualifies for an award, whether a whistleblower must utilize
his or her company's internal compliance system before reporting to
the SEC, and the protections afforded whistleblowers under the anti-retaliation
provisions of the new rules. The SEC rules also provide that a whistleblower
may submit information about a possible securities law violation anonymously
but only if done through an attorney.
Pearson, Simon & Warshaw, LLP, Senior Counsel George S. Trevor calls
the whistleblower program, "a significant new tool for regulators
to uncover securities law violations in the financial markets. With SEC
resources strained by the new regulatory requirements imposed by Dodd-Frank
and investor confidence in the integrity of the financial markets at a
level not seen since the Great Depression, the whistleblower provisions
will provide substantial monetary incentives for insiders to report illegal
At over 300 pages long, the SEC's new whistleblower rules are complex.
Persons who believe they have original information about possible violations
of the federal securities laws should consult with an attorney to ensure
that they act in compliance with the SEC rules and remain eligible for
a financial award. Pearson, Simon & Warshaw's, Mr. Trevor notes,
"after representing investors in securities litigation for the past
26 years I am hardly surprised by the new rules' complexity. That
is why speaking to an attorney before submitting information to the SEC
is critical. However, I also want to applaud the SEC for standing firm
against Wall Street lobbyists' attempts during the SEC's rule
making process to weaken the effectiveness of the new whistleblower rules.
This program will help restore investor confidence in the integrity of
the United States securities markets."
About Pearson, Simon & Warshaw, LLP
Pearson, Simon & Warshaw, LLP is a nationally recognized firm with
offices strategically located in Los Angeles and San Francisco, representing
clients throughout California and the United States in both state and
federal courts. Pearson, Simon & Warshaw, LLP proven litigators enjoy
all types of challenging cases, including class actions, business litigation,
insurance law and professional liability claims. Pearson, Simon &
Warshaw, LLP has the requisite experience to handle challenging and complex
litigation. Pearson, Simon & Warshaw, LLP attorneys have proven time
and time again, that they are formidable, focused and thoroughly prepared
to take on challenging legal needs.
If you are aware of conduct by a company or person that you believe violates
the securities laws, please contact Pearson, Simon & Warshaw, LLP
to determine your rights. You may contact Senior Counsel, George S. Trevor,
at (415) 433-9000 or firstname.lastname@example.org for more information.
Link to SEC's Office of the Whistleblower: