SEC Program Yields Highest Whistleblower Rewards
The Securities and Exchange Commission this fiscal year received the largest number of tips from whistleblowers and also paid the largest rewards in recent history. The organization established the program in 2011 as part of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act. This year it has awarded more than $168 million to 13 individuals.
About the False Claims Act
In 1863 to combat fraud in Union contracts during the Civil War, Congress passed the Whistleblower or Qui Tam statute. It was not until 1986 before Congress modernized the Whistleblower statute and renamed it to the False Claims Act (FCA). It became the government’s primary tool to combat fraud. Individuals who report government-program fraud bring the lawsuit on behalf of the government.
The Law Protects and Rewards a Whistleblower
When a knowledgeable attorney like those found at The Michael Brady Lynch Firm files a False Claims Act lawsuit, he or she files it under a seal. This means it is completely confidential. There is also a full disclosure statement in the suit, which details the evidence collected by a whistleblower.
After we file your suit, the Department of Justice will review the evidence before deciding to step in and decide if they want to prosecute the case. The government’s fraud investigator will work closely with you, the whistleblower to identify all responsible for the fraud.
You could be entitled to 15-30% of the funds recovered. In order to receive the reward, you must be the first one to file a case under the False Claims Act. This is why it is key to pick an experienced attorney to work quickly to get your compensation.
Record-Breaking Whistleblower Rewards This Year
The number of whistleblower rewards this year was more than all of the previous six years combined. Before, the total whistleblower rewards were $158 million to 46 individuals. However, this year the SEC gave $168 million to just 13 people. Also, the agency received 5,282 tips during the year. This was the most ever in a single year. Additionally, it showed an almost 20% increase from last year.
The SEC made two of its largest awards in the 2018 fiscal year, including one made to three individuals totaling $83 million and another to two individuals totaling almost $54 million.
The Supreme Court ruled in February that individuals must report alleged corporate wrongdoing to the SEC and not just their company to qualify for anti-retaliation protection provided by the Dodd-Frank Act. The SEC said it saw an increase in the number of tips it received in the months following the Supreme Court’s ruling.
Premier Complex Litigation Attorneys
The Michael Brady Lynch Firm has successfully represented thousands of consumers and recovered millions of dollars for their clients. Our team of attorneys has been recognized as some of the most experienced and successful in the country. Our award-winning staff is also sought after for our knowledge on complex litigation, scientific evidence development, negotiation strategies and trial tactics.
Most of all, our law office is resourceful and dedicated to pursuing any compensation you are due. Because of this, we have received a high degree of peer recognition and professional achievement, such as inclusion on numerous Plaintiff Steering Committees. We will take whatever legal measures are necessary when fighting for your rights to damages.
Therefore, if you believe you have uncovered evidence of fraud involving a government-funded program, contact us today. Our attorneys have represented many clients in the past with complex cases. We will work tirelessly to obtain results on your behalf.