On September 22, 2014 the Securities & Exchange Commission (SEC) announced that it would pay a Dodd-Frank Act (DFA) whistleblower award of $30 to $35 million to an anonymous foreign tipster. DFA authorizes awards of 10% to 30% of the SEC’s recovery if the tip leads to an SEC enforcement action with sanctions exceeding $1
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Hospital System Agrees To Pay $85 Million To Resolve Alleged False Claims Act Violations
By Michael R. Bertoncini on
Continuing a trend we reported in January 2014, the U.S. Department of Justice announced another multi-million dollar settlement of alleged False Claims Act (“FCA”) violations. In this case, Halifax Hospital Medical Center and Halifax Staffing, Inc. (collectively “Halifax”) agreed to pay $85 million to resolve allegations that they violated the False Claims Act by submitting…
SEC Whistleblower Awarded Record $14 Million
By David R. Jimenez on
On October 1, the Securities and Exchange Commission (SEC) announced that an unidentified whistleblower, “who voluntarily provided original information” to the SEC “that led to the successful enforcement” action against an undisclosed company, has been awarded a record $14 million. According to the SEC, the award “recognizes the significance of the information that the Claimant provided to the Commission, the assistance the Claimant provided in the Commission action, and the law enforcement interest in deterring violations by granting awards.”
This is the third such award the SEC has made under the whistleblower provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (DFA) since the statute’s passage in 2010. The others were in the amounts of $50,000 and a little more than $25,000.
The latest record award is no surprise to employers and their lawyers who have been monitoring the SEC’s actions under the DFA’s “bounty” provisions.
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