InfoBytes Blog
SEC awards $9.5 million to whistleblowers
On August 10, the SEC announced awards totaling nearly $6 million to two whistleblowers whose information and assistance led to separate successful SEC enforcement actions. According to the first redacted order, the SEC awarded a whistleblower nearly $3.5 million for voluntarily providing original information to the Commission, which expanded an existing investigation into a new geographic area and led to a successful enforcement action. The whistleblower also traveled to meet in person with staff, identified an important witness, and provided multiple supplemental submissions that assisted the SEC with the charges in the underlying enforcement action. In the second redacted order, the SEC awarded a whistleblower approximately $2.4 million for alerting the SEC to previously unknown conduct, which initiated the opening of the investigation. The whistleblower also met in person with SEC staff, provided documents, and identified potential witnesses.
Earlier on August 6, the SEC announced awards totaling more than $3.5 million to three whistleblowers whose information and assistance led to two SEC enforcement actions. According to the first redacted order, the SEC awarded a whistleblower nearly $2 million for voluntarily providing original information to the Commission, which led to a successful enforcement action. The whistleblower also provided ongoing assistance, participated in interviews, and provided information that saved staff time and resources. In the second redacted order, the SEC awarded a whistleblower approximately $1 million and a second whistleblower approximately $500,000. The SEC noted that though both whistleblowers provided valuable information, the whistleblower who received the larger award provided information and cooperation that was more impactful in the enforcement action.
The SEC has awarded approximately $956 million to 195 individuals since issuing its first award in 2012.