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Whistleblower Rewards and Settlements – August 2024

The Department of Justice (DOJ), the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC) have each released press releases highlighting whistleblower rewards and False Claim Act settlements in August 2024.  See below for updates from each agency. 

Security and Exchange Commission – 4 Whistleblower Awards for $122 million 

On August 23, 2024, the SEC announced awards of more than $98 million to two whistleblowers whose information assisted an SEC enforcement action, including assistance that provided a 2nd agency with a false claim action. Separately in August, the SEC announced another pair of whistleblower will receive $24 million. 

The details of the $98 million award case are hidden for confidentiality, but the SEC announced the first whistleblower whose tip caused the initial investigation to open, and who provided ongoing assistance, will receive $82 million.  A 2nd whistleblower, whose tips assisted one aspect of the litigation, will receive $16 million. 

Creola Kelly, Chief of the SEC’s Office of the Whistleblower said “Whistleblower information and cooperation play an integral role in the SEC’s enforcement efforts… Without these whistleblowers’ information, the violations would have been difficult to detect. 

The details of the $24 million award announced are also hidden for confidentiality, and again will be divided across two whistleblowers.  The first whistleblower is set to be awarded $4 million, and the second $20 million.  The SEC noted the 2nd whistleblower provided “substantial cooperation critical to the success of the action”. 

Department of Justice – $13.5 million False Claim Act settlement 

The DOJ announced a settlement of $13.5 million for a company that was alleged to have submitted claims to Medicare, Tricare and other federal programs improperly.  The settlement agreement notes there were a series of whistleblowers coming forward in 2020, 2021 and 2022 which were consolidated into a single case. 

The DOJ settlement agreement notes that the allegations include billing for equipment that was not delivered, along with improper claims. The company is set to pay $13.5 million to settle the case, any whistleblower awards for the multiple qui tam actions that were consolidated was not yet announced.  Awards if any after a successful action, occur after the government has a settlement or other recovery. 

Commodity Futures Trading Commission – $4 Million Whistleblower Award 

On August 29th, the CFTC announced an award of over $4 million to a whistleblower who provided tips and assistance in an investigation. The CFTC noted that without the whistleblowers information, the action would have been difficult to identify and prove. 

The CFTC noted that the action resulting in the award dealt with failures to comply with CFTC rules, specifically those dealing with manipulative acts and practices, and deceptive or fraudulent conduct. 

False Claims Act Lawyer 

Schneider Wallace represents whistleblowers, whether the violation is against the federal government, state government, or a local government. Schedule a consult with our whistleblower law firm for a free and private legal consultation. 

To speak with a lawyer with years of experience handling both government whistleblower and contractor fraud cases, contact us at 1-800-689-0024 or info@schneiderwallace.com.