Eleventh Circuit Confirms that SEC Whistleblower Award Eligibility is Determined Under an Actual Causation Standard

On August 14, 2023, in a rare whistleblower award opinion, the Eleventh Circuit affirmed the Securities and Exchange Commission’s (SEC) denial of a whistleblower award in Granzoti v. Securities and Exchange Commission, 2023 WL 519503 (11th Cir.). The opinion establishes that eligibility for SEC whistleblower awards follows an actual causation standard – i.e.

Congress Fixes Major Hole in Treasury’s Nascent Whistleblower Program While Expanding its Scope to Sanctions Evaders

Takeaways:

  • The Treasury Whistleblower Program now provides for guaranteed awards of 10% to 30% of the government recovery in covered actions
  • The Treasury Whistleblower Program has been expanded to include not just tips concerning anti-money laundering violations but also those regarding various forms of sanctions evasion
  • The new law goes hand-in-hand with the government’s aggressive crackdown on Russian sanctions evaders and those that assist them

During the holidays,

PPP Loan Fraud at the Beach

It’s not always sunny for everyone on the Florida beaches. On January 30, 2023, the United States Attorney’s Office for the Middle District of Florida announced that Al Clint LaRoche of West Palm Beach pleaded guilty to two counts of bank fraud involving more than $1 million from the Paycheck Protection Program (PPP) loan program.

3rd Cir. Clarifies FCA Retaliation Standard, Widens Door for Plaintiffs, Leaves Loose End

On November 30, 2022, the United States Court of Appeals for the Third Circuit revived a quality control manager’s FCA retaliation claim in United States ex rel. Ascolese v. Shoemaker Constr. Co., — F.4th —, 2022 WL 17335121 (3d Cir. 2022).

The Third Circuit’s precedential opinion addressed for the first time how Congress’s 2009 and 2010 amendments affect the False Claims Act’s retaliation standard.

Do Whistleblowers Have to be American Citizens?

The United States government has four primary whistleblower statutes and reward programs:

  • The Federal False Claims Act (“FCA”)
  • The Securities and Exchange Commission (“SEC”) Whistleblower Program
  • The Internal Revenue Service (“IRS”) Whistleblower Program
  • The Commodity Futures Trading Commission (“CFTC”) Whistleblower Program

All of these whistleblower programs are quite democratic.

Contact one of our

Experienced Attorneys

If you are aware of any person, corporation or entity that you think may be violating the Federal False Claims Act or a State False Claims Act, contact us today.

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