Whistleblower News: $10M SEC Award, Scripps Research Institute, CFTC Whislteblowers
SEC Awards More Than $10 Million to Whistleblower
The Securities and Exchange Commission today announced an award of more than $10 million to a whistleblower whose information and assistance were of crucial importance to a successful SEC enforcement action.
The SEC has awarded approximately $520 million to 94 individuals since issuing its first award in 2012. All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards. Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action. Whistleblower awards can range from 10-30% of the money collected when the monetary sanctions exceed $1 million. read more »
Scripps Research Institute To Pay $10 Million To Settle False Claims Act Allegations Related To Mischarging NIH-Sponsored Research Grants
The Scripps Research Institute (TSRI) has agreed to pay the U.S. $10 million to settle claims that it improperly charged NIH-funded research grants for time spent by researchers on non-grant related activities such as developing, preparing, and writing new grant applications, teaching, and engaging in other administrative activities, the Department of Justice announced today.
The settlement resolves allegations originally brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act by Thomas Burris, Ph.D, a former TSRI employee. The act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. Dr. Burris will receive $1.75 million. read more »
CFTC Awards Domestic and International Whistleblowers
The Commodity Futures Trading Commission today announced awards to two whistleblowers whose specific, credible, and timely information led the CFTC to open an investigation, and whose continued assistance helped lead to a successful enforcement action.
A whistleblower based in the U.S. first alerted the CFTC to the wrongdoers’ fraudulent activity and continued to provide helpful information and documents the Division of Enforcement may not have otherwise obtained. A second whistleblower, based overseas, subsequently provided the CFTC with information about an ongoing fraud being perpetrated by the same wrongdoers as well as their efforts to avoid detection by the CFTC. read more »