Katz, Marshall & Banks LLP Whistleblower Client Awarded $3.2 Million for Providing Critical “Roadmap” in Investigation

On Friday, April 23, 2021, the U.S. Securities and Exchange Commission (SEC) awarded $3.2 million on Friday to a Katz, Marshall & Banks client who supplied critical information to the Commission that led directly to a successful enforcement action against a large financial institution. 

The Katz, Marshall & Banks LLP client not only brought the misconduct to the Commission’s attention, but also provided a key “roadmap” of “subject matter expertise,” documents, and assistance during the investigation that proved vital to the SEC staff in investigating the company’s illegal activity.

Adam Herzog and David Marshall of Katz, Marshall & Banks, LLP, who represent the anonymous whistleblower, hailed the award. “Whistleblowers take on tremendous risk to themselves when they report company misconduct, and it takes someone with a great deal of integrity and courage, like our client, to go against the grain in these circumstances,” Mr. Herzog said. “Thanks in no small part to our client’s efforts, the SEC was able to hold the Company responsible for the significant harm it had caused investors. The SEC Whistleblower Program levels the playing field by creating opportunity for people to apprise the SEC of serious wrongdoing that harms investors. It’s particularly thrilling and gratifying to represent clients in this process.”

“We are so proud of our client,” Mr. Herzog continued. “The risk whistleblowers face is even greater in the financial industry, where the pressure to generate profits often results in harm to investors, and to anyone who dares speak up on their behalf. We have assisted many whistleblowers through this process and are happy to have lent our expertise and experience to someone who has navigated this difficult terrain and earned a substantial award as a result.”  

Congress created the SEC Whistleblower Program as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. With this latest award to the client of Katz, Marshall & Banks, LLP, the SEC has now paid out over $800 million to 153 individuals as part of its Whistleblower Program.