A recent program will allow the U.S. Securities and Exchange Commission to award individuals with insight and information on companies involved in improper financial practices and enforcement actions. JP Morgan whistleblowers to receive $50 Million for information in enforcement action against the investment bank.
The Whistleblower Program
The Dodd-Frank Wall Street Reform and Consumer Protection Act permits the SEC to compensate whistleblowers who are instrumental to the findings of investigations and administrative orders with monetary rewards. Under the program, whistleblowers can receive from 10 to 30 percent of sanctions paid by the offenders, if the amount is greater than $1 million.
Benefits of the Program
Since the program's launch in 2011, the SEC has paid out $376 million.
Jordan Thomas of Labaton Sucharow LLP who represented one of the whistleblowers, stated that the program is beneficial in that it allows tipsters to remain anonymous and offers compensation that encourages individuals to come forward and report those suspected of financial wrongdoings. Thomas was the attorney for other tipsters who received $49 million as part of an $83 million payout to whistleblowers in a SEC settlement with Merrill Lynch for $415 million.
Large Reward for JP Morgan Tipsters
The latest payout was $50 million to 2 unidentified whistleblowers for helping the SEC with an unnamed enforcement action. This was the second largest award received through the whistleblower program since September.
The enforcement action involved the $267 million settlement in 2015 with JP Morgan Securities, LLC in which JP Morgan was accused of depriving clients of important information needed to make informed investment decisions.
Speak with a Whistleblower Attorney
If you believe you may have a whistleblower case, contact the whistleblower attorneys at our law firm for a free initial consultation. We investigate cases thoroughly to recover evidence of the illegal practices within the company, company knowledge of the illegal practices and the duration of the fraudulent behavior before filing the case with the government.
Contact Dimond Kaplan & Rothstein Today
If the company or business you work for is in violation of federal securities laws, and you report it, you are protected under federal whistleblower law and may be entitled to a reward. However, before you report your employer’s legal violations, you should consult an experienced attorney to make sure you are afforded all of the protections available to you under the law.