SEC | TaxConnections

10 Aug 2023

SEC Awards More Than $104 Million To Seven Whistleblowers

The Securities and Exchange Commission announced awards of more than $104 million to seven individuals whose information and assistance led to a successful SEC enforcement action and related actions brought by another agency. Today’s combined award is the fourth largest in the SEC’s whistleblower program’s history.

The seven whistleblowers were composed of two sets of joint claimants and three single claimants, and each provided information that either prompted the opening of or significantly contributed to an SEC investigation. The seven individuals’ assistance to the staff included providing documents supporting the allegations of misconduct, sitting for interviews, and identifying potential witnesses.

“Today’s awards show that specific and credible information plays an integral part in the SEC’s enforcement efforts,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower. “These whistleblowers provided information that helped Enforcement staff detect and prosecute wrongdoing in a timely manner.”

Payments to whistleblowers are made out of an investor protection fund, established by Congress, which is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards. Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action, and adhere to filing requirements in the whistleblower rules. Whistleblower awards can range from 10 to 30 percent of the money collected when the monetary sanctions exceed $1 million.
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Written by TaxConnections Admin | Posted in Securities and Exchange Commission

19 Oct 2017

Whistleblower Awarded More Than a Million Dollars By The SEC

The Securities and Exchange Commission announced that a whistleblower has earned an award of more than $1 million for providing the SEC with new information and substantial corroborating documentation of a securities law violation by a registered entity that impacted retail customers.

Written by William Byrnes | Posted in Securities and Exchange Commission

18 Oct 2017

Will Equifax Executives Face SEC Charges For Selling Their Shares Before the Public Disclosure of 145 Million Hacked Consumer Files Led to Share Price Collapse?

From mid-May 2017 through July 2017 Equifax, one of the nation’s three major credit reporting agencies, allowed the personal and financial records of 145.5 million American consumers to be collected by nefarious criminal actors. On March 8, 2017, reports the New York Post, Equifax had been warned by the Department of Homeland Security about the software flaw that could lead to the breach, but Equifax did not patch the flaw.

Equifax, as reported by the Federal Trade Commission, allowed access to people’s names, Social Security numbers, birth dates, addresses and, in some instances, driver’s license numbers. They also stole credit card numbers for about 209,000 people and dispute documents with personal identifying information for about 182,000 people. UK and Canada personal information was also hacked.

Written by William Byrnes | Posted in Equifax • Securities and Exchange Commission

17 Oct 2017

SEC Obtains $58 Million Judgment Against Perpetrator of International Pump-and-Dump Scheme Involving Marley Coffee

The Securities and Exchange Commission obtained a $58 million judgment against a UK and Canadian resident charged with perpetrating a multi million-dollar, international pump-and-dump scheme involving the stock of Jammin’ Java Corp., a company that used trademarks of the late reggae artist Bob Marley to sell coffee products.

The final judgment against Wayne Weaver, entered on October 2, 2017, permanently enjoins Weaver from violating Section 5 of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Section 13(d) of the Exchange Act and Rules 13d-1 and 13d-2 thereunder; permanently bars Weaver from participating in penny stock offerings; and orders Weaver to pay disgorgement of $26,371,585, prejudgment interest of $5,221,809, and a civil penalty of $26,371,585, for a total of $57,964,979. On September 15, 2017, Weaver filed a notice of appeal.

Written by William Byrnes | Posted in International • Securities and Exchange Commission