Beautiful Virgin Islands

Tuesday, May 20, 2025

U.S. Supreme Court rebuffs RBS ex-banker's whistleblower award bid

U.S. Supreme Court rebuffs RBS ex-banker's whistleblower award bid

The Supreme Court on Monday declined to hear former Royal Bank of Scotland managing director Victor Hong's bid to collect a U.S. government whistleblower award of at least $490 million for reporting alleged misconduct related to the institution's sales of mortgage-backed securities.
The justices turned away Hong's appeal of a lower court's ruling that even though his tips helped federal agencies win large settlements against the bank he was not eligible for a cut under the U.S. Securities and Exchange Commission whistleblower program because the SEC did not take enforcement action itself.

The SEC's whistleblower program was created as part of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, a law passed in response to the 2008 financial crisis. Under the law, eligible whistleblowers can receive a cash award of between 10% and 30% of any monetary sanctions collected above $1 million.

"The federal government, by its abusive actions, is putting its financial interests ahead of whistleblowers, without whom there would be little or no recoveries," Hong's attorney, Richard Corenthal, said in a statement.

The dispute centered on whether Hong's tips met the law's definition of "covered judicial or administrative action brought by the commission under the securities laws."

Hong resigned in 2007 after just six weeks on the job at RBS - now called Natwest Group PLC (NWG.L) - prompted by what he believed to be unlawful practices related to its portfolio of residential mortgage backed securities, court documents said.

In 2014, he submitted information to the SEC, which itself took no action against the bank but instead shared it with federal prosecutors and the Federal Housing Finance Agency for use in investigations they already had begun into RBS.

Hong provided further documentary evidence, helping FHFA and the U.S. Justice Department secure settlements with RBS for $5.5 billion and $4.9 billion, respectively. The bank denied wrongdoing.

Hong sought an award under the SEC's whistleblower program but the commission declared him ineligible because the action against RBS was not taken by the commission itself.

The Manhattan-based 2nd U.S. Circuit Court of Appeals in July agreed with the SEC, but noted: "We are mindful that this decision may strike some as inconsistent with the principal statutory goal of the program."

Hong's lawyers appealed to the Supreme Court, contending that the SEC is undermining the aim of Congress to incentivize and award whistleblowers by "coordinating enforcement efforts with other agencies and then refusing to pay an award."

RBS was not involved in the case.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Russia Expands Military Presence Near Finland Amid Rising Tensions
Indian Scholar Arrested in Crackdown Over Pakistan Conflict Commentary
Ontario Manufacturers Warn U.S. Tariffs Could Create Economic 'Ghost Town'
UK and EU Reach Landmark Post-Brexit Deal to Reset Relations
Israel Eases Gaza Blockade Amid Internal Dispute Over Military Strategy
President Biden’s announcement of advanced prostate cancer sparked public sympathy—but behind closed doors, Democrats are in panic
Trump Demands Probe into Kamala Harris for Paying Celebs to Fake Endorsements
At Age 92, the World’s Oldest President Has No Succession Plan — and That Could Spark a Crisis
U.S. Concerns Mount Over Chinese 'Kill Switch' Components Found in Solar Power Infrastructure
Bipartisan Criticism Surrounds Trump's Cryptocurrency Ventures
Diplomatic Efforts on the Russia-Ukraine Conflict
Mexican Navy Ship Collides with Brooklyn Bridge, Injuries Reported
A Chinese company made solar tiles that look way nicer than regular panels!
U.S. and Philippine Forces Test High-Powered Microwave Weapons in Joint Exercise
China Unveils Advanced AI Surveillance Tools at 12th Police Equipment Expo
Japan's Three Major Banks Report Record High Net Profits for Second Consecutive Year
The Chinese Dragon: The True Winner in the India-Pakistan Clash
US and EU Make Progress in Trade Talks, While Vietnam Negotiations Also Advance
Sean 'Diddy' Combs Trial: Ex-Girlfriend Cassie Ventura Testifies About Alleged Abuse
Former Wales Rugby Star Jamie Roberts to Pursue Medical Career
Australia's Venomous Creatures Contribute to Life-Saving Antivenom Programme
Passenger Travels Under Wrong Identity on British Airways Flight
Former FBI Director James Comey Questioned by Secret Service Over Social Media Post
The Spanish Were Right: Long Working Hours Harm Brain Function
After 108 Years: Moody’s Downgrades U.S. Credit Rating
Did Former FBI Director Call for Violence Against Trump? Instagram Post Sparks Uproar
US and UAE Partner to Develop Massive AI Data Center Complex
Russia and Ukraine Hold First Direct Peace Talks in Three Years — But No Breakthrough Yet
Apple's $95 Million Siri Settlement: Eligible Users Have Until July 2 to File Claims
US and UAE Reach Preliminary Agreement on Nvidia AI Chip Imports
KREMLIN has just approved Senator ALEXANDER " THE EXPERIMENT" KARELIN, of Novosibrisk, as Chief Negotiator at the Meeting in ISTANBUL with Ukraine & USA.
Shocking Footage Released: Diddy Caught Dragging Cassie in Brutal Hotel Hallway Assault
Starlink Now Profitable: SpaceX Hits Major Milestone with $11.8 Billion in Revenue
Portuguese Right-Wing Leader Collapses During Campaign Rally
A Pakistani imam in Italy gave a sermon stating that every Muslim should fight the infidels or face ‘catastrophic consequences’.
President Trump and Elon Musk Welcomed by Emir of Qatar Sheikh Tamim with Cybertruck Convoy
EU Court Orders Disclosure of von der Leyen’s Texts with Pfizer CEO Over €35 Billion Vaccine Deal
Strong Warning Issued: Do Not Use General Chatbots for Medical, Legal, or Educational Guidance
Saudi Arabia Emerges as Global Tech Magnet with U.S. Backing and Trump’s Visit
Mexican Influencer Valeria Márquez Killed During Livestream in Suspected Femicide
This man went to take $5,000 out his own bank account and was arrested for it
This was President's departure from Saudi Arabia. The Crown Prince personally escorted him back to the airport.
CIA Files Reveal Klaus Barbie's Role in Bolivian Drug Trade and Dictatorship Support
Daughter of crypto boss escapes Paris kidnap in latest in series of attacks
U.S. FDA to Remove Oral Fluoride Supplements for Children Amid Gut Health Concerns
Kim Kardashian Testifies in Paris Robbery Trial, Tells Gang Leader: 'I Forgive You'
NVIDIA and Saudi Arabia Launch Strategic Partnership to Establish AI Centers
Challenges Facing EU Foreign Policy Amidst Diverging Interests
Reports Reveal Alarming Cognitive Decline in Biden Prior to Election Withdrawal
Trump Meets Syrian President Ahmad al-Shara in Historic Encounter
×