Category: Financial Industry

The SEC Announces Another Record-Breaking Year for its Massively Successful Whistleblower Program

Key Takeaways

  • Largest year ever for whistleblower awards (nearly $600 million in total)
  • Largest single whistleblower award ever ($279 million to an individual whistleblower)
  • Largest year for whistleblower tip volume (over 18,000 tips submitted to the SEC)
  • The SEC underscores its whistleblower protection efforts through Rule 21F-17 enforcement

On November 14,

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,

The CFTC Breaks All Records –$200 Million Whistleblower Award

Takeaway: Misconduct in the multitrillion dollar derivatives market can lead to massive recoveries for the government and whistleblowers alike.   Even when the CFTC is already on the case, a whistleblower who tips off the government during an ongoing investigation may remain eligible for an award if they provide original information that “substantially contributes” to a successful enforcement action. 

Landmark Qui Tam Recovery: Private Equity Firm H.I.G. Capital Settles FCA Case for $20 Million

Takeaway: The H.I.G. case will no doubt embolden the Department of Justice and whistleblowers going forward.  Now DOJ and relators have a strong summary judgment opinion to ground liability in future cases and several sizeable recoveries against PE firms to use as comparators for settlement purposes.  With a more rigorous regulatory environment under the Biden administration,

2020 False Claims Act Recoveries: $2.2 Billion in Recoveries and Over $309M in Awards to Whistleblowers

Takeaways:

  • Over $300 million awarded to whistleblowers.
  • Dip in recoveries reflects pandemic and economic challenges.
  • Number of FCA filings hits a record.
  • Healthcare continues to dominate FCA recoveries with kickbacks a major focus.
  • Rebound in recoveries is likely as defendants regain financial footing.

Calling Insiders With Information on Pandemic Fraud, Waste & Abuse

On April 16, 2020, the Honorable William M. McSwain, United
States Attorney for the Eastern District of Pennsylvania, issued a sweeping
request for help in identifying companies and individuals who seek to “exploit
the devastating effects of the coronavirus pandemic for their own benefit.” The
Philadelphia United States Attorney’s Office has a long history fighting fraud.

International Whistleblowing Legislation and America’s False Claims Act

This is the second part of a two-part article.

In the first of this two-part series, we discussed the success of the United States’ federal False Claims Act (FCA),[1] the rise of international whistleblowers through a study of the Michael Epp case,

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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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