In the second largest whistleblower payout ever, the U.S. Securities and Exchange Commission (SEC) is paying $22 million to a former Monsanto Co. executive, a corporate insider who provided a “detailed tip and extensive assistance” in stopping illicit, fraudulent activity relating to the company’s reported sales of Roundup, reported Bloomberg and other journals.
This award is the largest since 2014, when $30 million was awarded to a whistleblower. If any whistleblower voluntarily provides the SEC with “unique information that leads to a successful enforcement action,” then they become eligible for compensation.
“Company employees are in unique positions behind-the-scenes to unravel complex or deeply buried wrongdoing,” stated Jane Norberg, acting chief of the SEC’s Office of the Whistleblower. “Without this whistleblower’s courage, information, and assistance, it would have been extremely difficult for law enforcement to discover this securities fraud on its own.”
Obtaining Recoveries for Whistleblowers and Upholding the Public Trust
Lieff Cabraser represents whistleblowers in a wide range of False Claims Act cases, including medicare and healthcare fraud, defense contractor fraud, securities and financial fraud, and many other false claims.
Under the financial reform legislation enacted in 2010, known as the Dodd-Frank Wall Street Reform and Consumer Protection Act, whistleblowers who provide the Securities and Exchange Commission or the Commodity Futures Trading Commission with information about a violation of federal securities laws may be entitled to a reward if the government acts on that information. The recovery in this type of whistleblower case can be from 10 to 30 percent of the amount the government collects.
More broadly, the False Claims Act prohibits people and companies from defrauding the federal government by knowingly presenting, or causing to be presented, a false claim for payment or approval. The act is designed to prevent losses to the federal government. Violations of the False Claims Act can result in judgment in an amount equal to three times the amount of losses the U.S. Treasury sustained, plus civil fines.
Contact Us for a Confidential Review of Your Whistleblower Case
If you know of or suspect a fraud being perpetrated by a financial institution or fraud against the federal government, we welcome the opportunity to discuss the matter with you. There is no fee or obligation for our review of your potential case, and all information you provide will be held in the strictest confidence.