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SEC Hints More Whistleblower Cases with Rewards

On June 12, 2013, the SEC formally announced its second whistleblower award to three individuals.  While the award recipients remain unidentified, the SEC did say that they will be receiving 5 percent of any sanctions that the SEC collects from its investigation against Locust Offshore Management LLC, as well as its CEO, Andrey C. Hicks. The case is currently underway in Massachusetts federal court.

Initially introduced under the Dodd-Frank Act, the SEC received over 3,000 whistleblower tips in the first year of the program.  Recent comments by Stephen Cohen, Associate Director of the SEC’s Division of Enforcement indicate that more awards may be announced soon.  At a recent Corporate Crime Reporter conference, he stated that the whistleblower program will produce “incredibly impactful cases,” with “some extremely significant whistleblower awards.”

Click here to view the SEC’s 2012 Annual Report on the Dodd-Frank Whistleblower Program.