Kohn, Kohn & Colapinto, LLP’s Post

Our latest blog post is up. As promised, Round 2 of our exploration of the materiality standards in Title 18 securities fraud and Title 15 securities fraud. In this post, we provide a roadmap for counsel to argue, no matter which statute a defendant is charged under, that the higher "reasonable investor" standard still applies. https://lnkd.in/eaJghWAM

RKS partner Michael Hampson discusses one of the key elements of a fraud claim for defrauded investors seeking recovery of their losses in the Fifth Circuit in today's blog post.

A recent and very interesting speech from DAG Lisa Monaco announcing an enhanced DoJ appetite for rewarding whistleblowers (WB) in the US, a program designed to fill the gaps from other WB programs. There are plans to pilot this in 90 days(!) Some clear and common sense exclusions were drawn though: WB must bring new information not known to the DoJ; WB must not be involved in the criminal activity; WB must not receive duplicate rewards from other similar programs (e.g. False Claims Act, etc) and WB paid only after all victims have received appropriate compensation. Interestingly, there was no mention of the impact of such changes on corporate WB programs and internal investigations. Arguably, this new approach would make companies : (1) consider faster and harder actions to investigate WB reports internally; (2) consider even quicker the timing of potential self-disclosures; (3) it also increases the risks of WB bypassing internal reporting channels and reporting first to the DoJ (as yet, there are no requirements for WB to follow internal reporting process first, as in some EU countries). The SEC still rewards internal reporting first. This change in the DoJ appetite for rewarding WB also comes when the SEC announced last year the highest combined and individual awards to whistleblowers: $600 million awarded to 68 whistleblowers, including over $270 million awarded to a single whistleblower.

J.P. Morgan has agreed to a settlement of $18 million with the U.S. Securities and Exchange Commission (SEC) over alleged violations of whistleblower protection rules. This case underscores the significance of adhering to legal and ethical standards in financial practices, especially regarding whistleblower protections. For a detailed overview of the case and its implications, you can read the full article here. #ethicsandcompliance #whistleblower

The SEC charged JP Morgan $18 million for preventing clients and brokerage customers from reporting breaches of law to regulatory authorities that occurred between March 2020 and July 2023. JP Morgan included provisions in their contracts obstructing clients from contacting the SEC with evidence of violating laws, making them have to choose between receiving settlements, credit, and services and reporting wrongdoing to the SEC. The company was charged with violating ⚖️Rule 21F-17(a) under the Securities Exchange Act of 1934. The rule, the SEC's whistleblower protection rule, prohibits taking any action to impede an individual from communicating directly with the SEC staff about possible securities law violations. The company also agreed to be censured to cease and desist from violating the whistleblower protection rule and paying the $18 million civil penalty. #sec #whistleblower #Rule21F-17(a) Read more:👇 Release - https://lnkd.in/e3qv95KZ Order - https://lnkd.in/ecM_Uwih

In our latest alert, our lawyers discuss the recent Securities and Exchange Commission enforcement actions in the name of whistleblower protection and offer some practical tips for what firms and companies may do to proactively mitigate exposure. https://ow.ly/XfQq30sA29C

In our latest alert, our lawyers discuss the recent Securities and Exchange Commission enforcement actions in the name of whistleblower protection and offer some practical tips for what firms and companies may do to proactively mitigate exposure. https://ow.ly/eRIi30sA2BW

Check out this update from Jennifer Beidel regarding the rapidly evolving landscape of white collar enforcement

Chair of Lewis Brisbois’ #SEC Enforcement & Litigation Practice Paul Kisslinger recently joined "The World and Everything In It" podcast to discuss a pending United States Supreme Court case that is poised to have a significant #impact on the securities fraud #litigation landscape. See what Paul had to say about Macquarie Infrastructure Corp. v. Moab Partners LP, and get a link to the full episode on our website. #SecuritiesLaw #CorporateLaw #LegalPodcast #Podcast #LawFirm #SupremeCourt

“Knock first.” This was the message provided yesterday by Deputy Attorney General Lisa Monaco of the Department of Justice (DOJ). Monaco’s message, given at the American Bar Association’s 39th National Institute on White Collar Crime, relates to a new whistleblower rewards program that the DOJ is set to launch later this year. The program is intended to fill the gaps between already established SEC, CFTC, IRS and FinCEN whistleblower programs. It will not only reward whistleblowers for providing otherwise unknown information to the DOJ regarding significant corporate or financial misconduct, but may also award the whistleblower a portion of the resulting forfeiture. While additional details of the process will be described in upcoming announcements, basic “guardrails” for rewarding a portion of the forfeiture have already been established. These types of payments would be offered if: - All victims have been properly compensated; - The truthful information provided was not previously known to the government; - The whistleblower was not involved in the criminal activity; and - A potential whistleblower reward is not covered under an existing financial disclosure incentive program. Regardless of whether you are an “innocent whistleblower, a potential defendant looking to minimize criminal exposure, or the audit committee of a company where the misconduct took place,” the program is designed to create an “if you’re not first, you’re last” mindset, incentivizing individuals to be the first one to inform the DOJ of certain misconduct. And to all those considering voluntary self-disclosure, Monaco’s message was clear: “knock on our door before we knock on yours.” Monaco’s full statement from yesterday can be found on the DOJ’s website here: