A tipster who reported his firm's securities violations before the passage of the Dodd-Frank Act cannot collect a whistleblower's reward under that Act, the Second Circuit has ruled.
Over a period of five years, Larry Stryker repeatedly informed the SEC about questionable practices at his firm, Advanced Technologies Group, leading to an enforcement action in 2009 and an eventual $20 million settlement.
Under Dodd-Frank, whistleblowers can collect 10 to 30 percent of the money recouped from a successful SEC enforcement action based on their information. In 2011, Stryker filed for just such an award. The SEC refused, arguing that since he offered information before the passage of Dodd-Frank, he was not entitled to to the $2 to $6 million that would otherwise be his share under the Act.