Securities and Exchange Commission

The SEC Announces Awards of $13 Million and $10 Million to Two Whistleblowers

Published on: June 2, 2021 | by Iorio Altamirano

The Securities and Exchange Commission (“SEC”) began the month of June 2021 by announcing awards of approximately $13 million and $10 million to two whistleblowers whose whistleblower tips led to successful SEC enforcement actions and related actions. In addition to the initial tips, the whistleblowers also provided the SEC and another federal agency with substantial assistance by submitted information and documents, participating in interviews, and identifying key individuals who engaged in the misconduct at issue.

According to Emily Pasquinelli, the Acting Chief of the SEC’s Office of the Whistleblower, the “whistleblowers’ information and assistance led to multiple successful enforcement actions related to a complex and fraudulent scheme involving multiple individuals and tens of millions of dollars in ill-gotten gains.”

In total, the SEC has awarded over $928 million to 166 individuals since the whistleblower program became effective in August 2011. All awards are paid 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.

Broker Spotlight: Ross Barish of Joseph Stone Capital L.L.C. – Mineola, NY

Published on: May 31, 2021 | by Iorio Altamirano

Ross Barish is a stockbroker with Joseph Stone Capital L.L.C. (“Joseph Stone Capital”) in Mineola, New York. Mr. Barish is currently under investigation by the United States Securities and Exchange Commission (“SEC”) for defrauding sixteen retail customers by executing a high-cost, in-and-out pattern of trading that lost his customers over $800,000 while generating commissions and fees for him of more than $400,000.

The sixteen customers experienced total losses of $814,509.

If you have suffered financial losses investing with Ross Barish or Joseph Stone Capital L.L.C., or suspect that Mr. Barish did not have your best interest in mind when recommending investments or making account transactions, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your account or annuity contract.

$28 Million Awarded to Whistleblower by SEC

Published on: May 19, 2021 | by Iorio Altamirano

The Securities and Exchange Commission (“SEC”) announced an award of more than $28 million to a whistleblower whose information led to both an SEC enforcement action and an investigation by another federal agency. The regulatory actions resulted in significant enforcement actions.

According to Reuters, the whistleblower’s tip led U.S. authorities to bring bribery charges against a subsidiary of Panasonic Corp. In 2018, Panasonic Avionics Corp consented to pay approximately $280 million to settle criminal and civil charges that the company falsified its financial records to conceal payments to sales agents in China and other parts of Asia.

The $28 million award is the tenth-largest in the SEC’s Whistleblower Program’s history.

GPB Automotive Portfolio, LP’s Latest Public Filing Raises Doubts That the Business Will Survive; Investors Should Contact an Attorney to Review Legal Rights

Published on: May 18, 2021 | by Iorio Altamirano

On Friday, May 14, 2021, GPB Capital Holdings LLC (“GPB Capital”), a private equity firm based in New York, registered some units in its GPB Automotive Portfolio, LP (“GPB Automotive”) with the Securities and Exchange Commission. As part of its filing, GPB Automotive disclosed that it had substantial doubt of its ability to continue operations. Specifically, GPB Automotive made the following risk factor disclosures to investors and potential investors:

We have determined that there is substantial doubt as to our ability to continue as a going concern, due to the expiration of the credit facility for the majority of our dealerships within 12 months, as well as certain other factors. Our inability to extend the maturity of our credit facility, or replace the credit facility, prior to its maturity in February 2022 would materially adversely affect our financial condition, results of operations, cash flows and business operations.
We may not have adequate funds to complete future capital improvement programs or to make additional acquisitions.

SEC Awards $2.5 Million to Whistleblower, as Chief of the SEC’s Office of the Whistleblower Announces Impending Departure

Published on: April 10, 2021 | by Iorio Altamirano

On April 9, 2021, the Securities and Exchange Commission (“SEC”) announced an award of approximately $2,500,000 to a whistleblower who provided information and assistance that resulted in a successful SEC enforcement action. The whistleblower provided crucial evidence that supported charges related to a breach of fiduciary duties owed to investors, according to Jane Norberg, Chief of the SEC’s Office of Whistleblower.

Unrelatedly, on April 8, 2021, the SEC announced that Ms. Norberg, who has been the Chief of the SEC’s Office of Whistleblower since 2016, intends to leave the agency this month. Ms. Norberg has been with the Whistleblower Office since its inception in 2012. The Whistleblower Office’s Deputy Chief, Emily Pasquinelli, will serve as Acting Chief following Ms. Norberg’s departure.

In total, the SEC has awarded over $762 million to 148 individuals since the whistleblower program became effective in August 2011. All awards are paid 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.

SEC Awards Over $500,000 to Whistleblower, the 40th Individual to Receive an Award This Past Year

Published on: March 29, 2021 | by Iorio Altamirano

The Securities and Exchange Commission (“SEC”) announced an award of over $500,000 to a whistleblower who provided information and assistance that helped shut down an ongoing fraudulent scheme. The whistleblower initially raised concerns internally before submitting a tip to the SEC.

In connection with the announcement, Jane Norberg, Chief of the SEC’s Office of Whistleblower, said that with this award, the SEC had “awarded 40 individuals this fiscal year, surpassing last year’s record of 39 individual awards. She added that the SEC had “awarded whistleblowers nearly $200 million in the first half of FY21 alone.”

In total, the SEC has awarded over $760 million to 145 individuals since the whistleblower program became effective in August 2011.

The SEC Has Awarded Approximately $1.5 Million to Whistleblower, Bringing the Whistleblower Program’s Total to Over $759 Million

Published on: March 9, 2021 | by Iorio Altamirano

The Securities and Exchange Commission (“SEC”) announced an award of approximately $1.5 million to a whistleblower whose information and assistance led to a successful SEC enforcement action.

In connection with the announcement, Jane Norberg, Chief of the SEC’s Office of Whistleblower, said that the “whistleblower alerted the SEC to previously unknown conduct and thereafter provided multiple submissions, identified potential witnesses, and met with staff on several occasions.”

Congress established the whistleblower program to incentivize whistleblowers with specific, timely, and credible information about federal securities laws violations to report to the SEC. A whistleblower may receive an award if they voluntarily provide the SEC with qualifying information that leads to a successful enforcement action. The award can range from 10 percent to 30 percent of the money collected as a result of the enforcement action.