News Coverage


Government Employee Receives $2.5 Million Whistleblower Award from SEC

Government Employee Receives $2.5 Million Whistleblower Award from SEC

- Whistleblower News Review

The SEC recently announced it has awarded $2.5 million to a whistleblower who is also a government employee. This is the first time the SEC has publicized giving an award to an employee of a government agency.

As it is customary with the SEC, the identity of the whistleblower remains anonymous, and specific details about the wrongdoing have not been revealed. The novelty here is the fact that a government employee has been considered eligible for an award.

On paper, government agency employees can receive whistleblower awards as long as they are not employees of a law enforcement organization, the SEC itself, or a number of regulatory agencies, which include the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation.

Although we have very little information about who the whistleblower is, the SEC revealed that he or she worked for a government agency that has a law enforcement component, but not in that specific section....


Merrill Broker Sues Firm for Allegedly Stealing Accounts During Medical Leaves

Merrill Broker Sues Firm for Allegedly Stealing Accounts During Medical Leaves

- Advisor Hub
A Merrill Lynch broker in Denver has sued the firm in federal court, claiming that its systemic “sabotage” of his relationship with clients during and following two medical leaves have cost him hundreds of thousands of dollars.
Kirk Kringel, who joined Merrill in October 2010 after 14 years with Morgan Stanley and its Dean Witter predecessor, alleged in a case filed last week in federal court in Colorado that Merrill retaliated against him for taking two leaves, violating his...

Attorney Blasts FINRA After Regulator Loses Insider Trading Case

Attorney Blasts FINRA After Regulator Loses Insider Trading Case

Lawyer says it was 'slimy' of FINRA to publicize the case while it was still being litigated

- Investment News
A lawyer for a stock analyst exonerated Wednesday in an insider trading case brought by the Financial Industry Regulatory Authority Inc. slammed the agency for publicizing the case during an industry conference while the case was still being litigated.
In October 2014, FINRA's department of enforcement filed a complaint against Matthew J. Dodds, a stock analyst at Citigroup Global Markets, alleging he "selectively disclosed material non-public information" to a hedge fund client...

Ex-Citigroup Analyst Defeats FINRA Charges Over Tips

Ex-Citigroup Analyst Defeats FINRA Charges Over Tips

- Law360
A panel of Financial Industry Regulatory Authority officers has dismissed allegations a former Citigroup research analyst improperly passed on info concerning Medtronic Inc.’s merger with Covidien PLC, ruling there was no evidence the analyst gave out material non-public information.
FINRA’s Department of Enforcement had alleged former Citigroup Global Markets Inc. equity research analyst Matthew J. Dodds selectively disclosed material nonpublic information to Citadel analyst...

Testing the Protocol, Merrill Sues Team Members Who Left with Client Data

Testing the Protocol, Merrill Sues Team Members Who Left with Client Data

- Advisor Hub
In a case that tests the limits of the Protocol for Broker Recruiting, Bank of America Merrill Lynch has asked a federal judge to prevent two former members of a large Miami team from using client contact information they took with them to another broker-dealer, according to a lawsuit filed Tuesday.
In a complaint filed in the Southern District of Florida, Merrill alleges that Juan Doria and Emmanuel Casuscelli took names and other data on 25 clients with them when they moved to UCAP...

Tilton Lays Path to Appeal SEC In-House Court Before Ruling

Tilton Lays Path to Appeal SEC In-House Court Before Ruling

- Bloomberg
Lynn Tilton figured the odds were against her from the start.
The U.S. Securities and Exchange Commission dragged the Patriarch Partners LLC founder before an in-house judge on fraud allegations that might end her career and cost her more than $200 million. Although the judge hasn’t ruled yet, her lawyers have already laid the groundwork for an appeal that would challenge the fairness of a process in which the agency wins more than 90 percent of its cases before administrative law...

Herskovits Attorneys at Law on Bloomberg

Lynn Tilton Challenges SEC In-House Trial Rulings

- Bloomberg
Robert Herskovits, founding partner at Herskovits Attorneys, discusses why Patriarch Partners founder Lynn Tilton is opposing the SEC administrative hearings, claiming that her case should be settled in federal court. He speaks with with Bloomberg’s Michael Best and Greg Stohr on Bloomberg Radio’s "Bloomberg Law."
Produced by David Sucherman.

Defense Contractor Cybersecurity Breaches Bring Wave of Cyber Whistleblower Opportunities

Defense Contractor Cybersecurity Breaches Bring Wave of Cyber Whistleblower Opportunities

- Whistleblower News Review
Failure to report cyberattacks among Department of Defense (DOD) contractors and subcontractors means big whistleblower opportunities for IT professionals and other defense contractor employees. Cyber hacking and cybersecurity breaches are widespread, and a whole new category of cyber whistleblower claims are cropping up around them under the federal False Claims Act.
Cybercrime Could Cost U.S. Companies $2 Trillion by 2019 Cybercrime cost U.S. companies approximately $500 billion in...

SEC Awards More than $1.4 Million to Whistleblower Compliance Officer

SEC Awards More than $1.4 Million to Whistleblower Compliance Officer

- Wall Street Journal
The Securities and Exchange Commission said Wednesday it awarded between $1.4 million and $1.6 million to a compliance officer who provided information that helped the SEC in an enforcement action against the tipster’s company, marking the second time a compliance professional received an award under the SEC’s whistleblower program.
The SEC didn’t name the whistleblower, citing confidentiality laws. It also didn’t name the company involved, saying it can’t...

Expert: Compliance Officer SEC Whistleblower Reward Precedent for False Claims Act Awards

Expert: Compliance Officer SEC Whistleblower Reward Precedent for False Claims Act Awards

- Whistleblower News Review
A $1.4 million SEC whistleblower reward to a corporate compliance officer for reporting company misconduct has caused a tremor through GC, compliance, and audit offices of non-compliant corporations but it signals something tectonic is coming soon according to legal experts. The architect of December’s massive Bank of America $16.6B False Claims Act settlement says the SEC action affirms compliance professionals are also eligible for the more lucrative False Claims Act whistleblower...