Former Katz, Marshall & Banks client Chris Smith, who in 2017 received a $2.4 million whistleblower award from the Securities and Exchange Commission, was the subject of an ABA Journal article, “Sounding the alarm: One whistleblower’s story.”
Smith, the first government employee to receive an SEC whistleblower award, noticed that a company appeared to be purposely abusing SEC time-stamping rules to avoid paying investors the full amounts they were owed. He reported the practice to his agency and to the offending company. After neither refused to act, Smith reported his information to the SEC, and over the next several years, he aided the Commission substantially in an investigation that culminated in an $8 million enforcement action.
With assistance from his attorneys, Michael Filoromo and David Marshall, Smith applied for an award through the SEC whistleblower program. In 2017, the Commission awarded Smith $2.4 million, equal to 30% of the proceeds of the enforcement action.
As Smith noted, the award wasn’t “easy money.” “The process is scary,” said Smith. “The key to managing your anxiety is your attorney. Mike and Dave kept me grounded.”
Read the full story here.