Additionally, the value of the assets seized from Hicks totals approximately $845,000, and thus the whistleblowers are expected to receive 5% each ($42,250)—a total of 15% of the amount seized ($126,750). The additional whistleblower award based on the assets seized in the criminal action are provided pursuant to Rule 21F-3(b) under the Securities Exchange Act of 1934, 17 C.F.R. § 240.21F-3(b). Agencies that fall under the “related action” include an Attorney General of the United States, an appropriate regulatory authority, self-regulatory organization, or state attorney general in connection with a criminal case. 17 C.F.R. § 240.21F-3(b).

ce in the company’s dedication to fair and consistent enforcement of the company’s policies and procedures. Companies can undertake a number of steps in this regard:Obtain periodic assessments of their risk profile and compliance program effectiveness as it relates to monitoring, reporting, and the conduct of effective investigations.Periodically evaluate and retrain middle management on appropriate responses and approaches to reporting and retaliation.Ensure thorough and timely follow-up on all whistleblower complaints.Foster an internal culture of compliance, ethics, and support for internal reporting.Disseminate materials regarding proper avenues for reporting unethical behavior.SEC Issues Largest-Ever Whistleblower Award, S.E.C. (May 5, 2023), https://www.sec.gov/news/press-release/2023-89; https://www.sec.gov/rules/other/2023/34-97438.pdfhttps://www.wsj.com/articles/record-279-million-whistleblower-award-went-to-a-tipster-on-ericsson-5af40b98?mod=latest_headlines 17 CFR § 240.21F 17 CFR § 240.21F-3 In Digital Realty Trust, Inc. v. Somers, the Supreme Court made the Dodd-Frank Act’s anti-retaliation protections contingent on external whistleblowing to the SEC. 138 S. Ct. 767 (2018). Additionally, if the individual communicating with the SEC is a “director, officer, member, agent or employee of an entity that has counsel,” the Commission may speak directly with the individual “without seeking the consent of the entity’s counsel.” Indeed, the SEC denied two other individuals who applied for awards for the same case, stating that the information provided by these claimants did not help the agency’s enforcement action.SEC Whistleblower Program Ends Record-Setting Fiscal Year With Four Additional Awards, S.E.C. (Sept. 30, 2020), https://www.sec.gov/news/press-release/2020-240. S.E.C., 2021 Annual Report to Congress: Whistleblower Program 1 (2020), https://www.sec.gov/files/owb-2021-annual-report.pdf.SEC Whistleblower Office Announces Results for FY 2022, S.E.C. (Nov. 15, 2022), https:

[6] Press Release, CFTC Announces $2 Million to Joint Whistleblowers (July 1, 2019), https://cftc.gov/PressRoom/PressReleases/7953-19.[7] According to the U.S. Equal Employment Opportunity Commission (“EEOC”), retaliation claims have doubled in the last 15 years and were the most common charge in 2018.[8] 17 C.F.R. §§ 240.21F-3, F-4(b).

The goal should be to both serve the investigative process and dispel any negative perception about the organization’s ability to adequately remediate potential misconduct. A thorough review of the investigations docket can also reveal any shortcomings that may exist.[1] 17 C.F.R. § 240.21F-3(a) (2017); 15 U.S.C. § 78u-6(b) (2017).[2]SEC Announces Its Largest Ever Whistleblower Awards, S.E.C. (Mar. 19, 2018), https://www.sec.gov/news/press-release/2018-44.[3]In re Claims for Award, Exchange Act Release No. 82897, 2018 SEC LEXIS 750, at *5-10 (Mar. 19, 2018).[4] 17 C.F.R. § 240.21F-1 through 21F-17 (2017).

The SEC issued its typical vague, redacted order granting the award claim. The order states that the SEC was issuing the award because the Claimant provided original information that led to successful enforcement pursuant to “Section 21F(b)(1) of the Securities Exchange Act of 1934, 15 U.S.C. § 78u-6(b)(1), and Rule 21F-3(a) thereunder, 17 C.F.R. § 240.21F-3(a).” The greater than $4 million award constitutes between 10 to 30 percent of the monetary sanctions collected by, or to be collected by, the SEC arising from the original information provided by the whistleblower.

21F (2011).[2] Implementation of the Whistleblower Provisions of Section 21F of the Securities and Exchange Act of 1934, 17 C.F.R. § 240.21F-3 (2011).[3]Id.

115 U.S.C. § 78u-6(a)(6).2 15 U.S.C. § 78-u6(h)(1)(A)(iii).3 Note that Dodd-Frank provides a generous bounty to whistleblowers who provide original information that leads to the recovery of monetary sanctions of $1,000,000 or more, equal to 10 to 30 percent of any monetary sanctions actually collected by the SEC. See 15 U.S.C. § 78u-6(b); 17 C.F.R. § 240.21F-3. For this, the statute is clear: the only "whistleblowers" entitled to receive this payment are individuals who disclose original information to the SEC, not internal whistleblowers.4 17 C.F.R. § 240.21F-2.5 SeeGenberg v. Porter, 2013 U.S. Dist. LEXIS 41302 (D. Colo. Mar. 25, 2013); Murray v. UBS Securities, LLC, 2013 U.S. Dist. LEXIS 71945 (S.D.N.Y. May 21, 2013); Kramer v. Trans-lux Corp., 2012 U.S. Dist. LEXIS 136939 (D. Conn. Sept. 25, 2012); Nollner v. S. Baptist Convention, Inc., 852 F. Supp. 2d 986, 993-95 (M.D. Tenn. 2012); Egan v. Tradingscreen, Inc., 2011 U.S. Dist. LEXIS 47713 (S.D.N.Y. May 4, 2011).6 2013 U.S. Dist. LEXIS 71945 (S.D.N.Y. May 21, 2013).7 720 F.3d 620 (5th Cir. 2013).8Banko v. Apple Inc., 2013 U.S. Dist. LEXIS 149686 (N.D. Cal. Sept. 26, 2013); Wagner v. Bank of Am. Corp., 2013 U.S. Dist. LEXIS 101297 (D. Colo. July 19, 2013).9Ellington v. Giacoumakis, 2013 U.S. Dist. LEXIS 148939 (D. Mass. Oct. 16, 2013).10Rosenblum v. Thomson Reuters Mkts.

40Endnotes1 See Arthur H. Aufses III, David S. Frankel, Alan R. Friedman & Theodore S. Hertzberg, SEC Proposes Rules To Implement DoddFrank Whistleblower Program, Sec. & White Collar Litig. Alert (Kramer Levin Naftalis & Frankel LLP, New York, N.Y.), Nov. 2010.2 Implementation of the Whistleblower Provisions of Section 21F of the Securities Exchange Act of 1934, Exchange Act Release No. 64545 (May 25, 2011) [hereinafter Final Release], available at http://www.sec.gov/rules/final/2011/34-64545.pdf.3 Rule 21F-2(a) (to be codified at 17 C.F.R. § 240.21F-2(a)) (emphasis added).4 Rules 21F-4(c)(1)-(2) (to be codified at 17 C.F.R. §§ 240.21F-4(c)(1)-(2)).5 Rule 21F-3(b) (to be codified at 17 C.F.R. § 240.21F-3(b)).6 The SEC has posted the comment letters at http://www.sec.gov/comments/s7-33-10/s73310.shtml and http://www.sec.gov/ comments/df-title-ix/whistleblower/whistleblower.shtml.