SEC year end report

The SEC year end report can be found here:

Here is a highlight:

“During Fiscal Year 2012, the Commission made its first award under the whistleblower program. On August 21, 2012, a whistleblower who had helped the Commission stop an ongoing multi-million dollar fraud received an award of 30 percent — the maximum percentage payout allowed by law — of the amount collected in the Commission’s enforcement action against the perpetrators of the scheme. The award recipient in this matter submitted a tip concerning the fraud and then provided documents and other significant information that allowed the Commission’s investigation to move at an accelerated pace and ultimately led to the filing of an emergency action in federal court to prevent the defendants from ensnaring additional victims and further dissipating investor funds. The whistleblower’s assistance led to the court ordering more than $1 million in sanctions, of which approximately $150,000 had been collected by the end of the fiscal year. In accordance with the 30 percent award determination, on August 21, 2012, the whistleblower was paid nearly $50,000.

  • Motions for additional judgments are currently pending before the court and any additional collections or increase in the sanctions ordered and collected will increase the amount paid to the whistleblower.”

The award was pretty modest by qui tam or whistleblower standards, but it’s importance lies in how quickly it came about: roughly one year after the SEC program started.  That is very fast. Now watch this space as bigger frauds get exposed!

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