A Law360 article titled SEC Welcomes Foreign Whistleblowers Though Courts Don’t quotes whistleblower lawyer Jason Zuckerman about the SEC awarding more than $30 million to a whistleblower under the SEC’s Dodd-Frank whistleblower reward program. The article focuses on two aspects of the SEC’s order. First, the order clarifies that the SEC can reward whistleblowers overseas who disclose violations of U.S. securities laws. Second, the order penalizes the whistleblower for not coming forward earlier to disclose the fraud.
The article quotes whistleblower attorney Jason Zuckerman’s observation that the SEC’s order will encourage whistleblower to disclose fraud early on to get a higher award:
“The SEC is sending a strong signal that whistleblowers should report violations early on in order to protect investors,” said Jason Zuckerman, a Washington, D.C.-based sole practitioner who focuses on whistleblower claims. “His massive award will likely embolden more whistleblowers to take the risk entailed in coming forward and reporting fraud.”