SEC gives $2.2M to whistleblower in first award under ‘safe harbor’ rule. Exposing Misconduct.

SEC gives $2.2M to whistleblower in first award under ‘safe harbor’ rule

April 6, 2018

The Securities and Exchange Commission announced a whistleblower award of more than $2.2 million, the first paid under the “safe harbor” rule.

The former company insider’s actions follow the Exchange Act Rule 21F-4(b)(7), which provides that if a whistleblower submits information to another federal agency and submits the same information to the SEC within 120 days, the SEC will treat the information as though it had been submitted to the SEC at the same time that it was submitted to the other agency.

After the whistleblower voluntarily reported information to another federal agency covered by the rule, which referred the matter to the SEC, the agency opened an investigation. Within 120 days of the initial report, the whistleblower provided the same information to the SEC and later provided “substantial cooperation” in the investigation, which led to enforcement action.

Read more here.
The materials on this website are for general information purposes only and should not be construed as legal advice, legal opinion or any other advice on any specific facts or circumstances. Readers should not act or refrain from acting upon this information without seeking professional advice. Transmission of information on or by use of this website is not intended to create, and receipt does not constitute, a lawyer-client relationship between the sender and receiver.
Mobile Menu
×