By Yin Wilczek
July 28 — The Securities and Exchange Commission July 23 declined to excuse a whistle-blower's untimely application for a reward, finding that ignorance of its program is not an “extraordinary circumstance” that excuses a latefiling.
The SEC also stressed that claimants bear the “ultimate responsibility” to learn about its bounty program and to take steps to claim their awards.
According to the SEC's website, the July 23 order marks the third time this year that the commission has rejected a whistle-blower's “extraordinary circumstances” showing.
Under the SEC's whistle-blower rules, claims must be filed within 90 days from the date the notice of a covered action is issued. The SEC may waive the 90-day deadline based upon a “showing of extraordinary circumstances.”
In the July 23 order, the commission explained that it is not enough for a whistle-blower to show that the filing was caused by circumstances beyond his or her control.
Moreover, the SEC spelled out the circumstances under which attorney misconduct would constitute an “extraordinary circumstance.”
The “requisite level of attorney misconduct causing the untimely submission must be severe, involving blatant client deception, outright abandonment, or similar egregious misconduct,” the SEC said. “[O]rdinary negligence, such as Claimant's attorney here may be responsible for will not suffice.”
The order is available at http://www.sec.gov/rules/other/ 2014/34-72659.pdf.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)