On March 2, 2015, as reported in the Wall Street Journal, the SEC issued a new SEC whistleblower award of over $500,000 for an officer of an unknown company who reported securities violations to the SEC. As detailed in the award, Officers of companies (along with compliance employees etc) must be careful in reporting information to the SEC so as to comply with the SEC whistleblower rules which require such individuals to wait 120 days after the information is properly reported internally before filing a claim with the SEC if they believe the company did not properly respond to the internal reporting. Failure to comply with such requirements likely would lead to a denial of any bounty even if the SEC takes enforcement action against the company and recovers more than one million dollars.
The award provides a wake up call to any internal corporate whistleblowers that they would do well to retain qualified counsel before making any whistleblower submission to the SEC as the rules are complex and are a mine field for those who seek to do the right thing and be compensated for the potential risk anyone takes in reporting misdeeds as to their employer.
At Meissner Associates we were one of the very few Whistleblower advocates who participated in the very formation of the current SEC Whistleblower rules including the rules involving internal reporting and met with various SEC Commissioners in doing so. After screening hundreds of calls from the public, from movie ads distributed immediately after the passage of the Dodd Frank Whistleblower law, Section 21F of the Securities Exchange Act of 1934, Meissner Associates has filed several potential whistleblower claims which the SEC are investigating. If you believe you have original information of securities law violations which have not been reported to the SEC and want a free confidential consultation regarding possible representation request a free confidential phone consultation or Call toll free 877-764-3100.