SEC issues whistleblower awards totaling nearly $2.6 million

Securities SEC Whistleblower Enforcement Investigations

On August 27, the SEC announced whistleblower awards to five individuals totaling nearly $2.6 million for information provided in three separate enforcement actions. According to the first redacted order, the SEC awarded a whistleblower nearly $1.2 million for voluntarily providing an “’independent analysis’ by creating and applying a complex algorithm to publicly available data,” which saved resources and time for Commission staff, and assisted the staff during settlement negotiations. In the second redacted order, the SEC awarded approximately $1 million to three individuals for providing original information and assistance that led to a successful enforcement action. According to the order, though the whistleblowers held compliance roles at the company, they are eligible for an award since they submitted information to the Commission more than 120 days after the alleged conduct was internally reported. The first whistleblower who received the highest award provided extraordinary assistance and comprehensive information that was vital to the successful enforcement action. In the third redacted order, the SEC awarded a whistleblower over $350,000 for providing independent analysis based on an unusual effort and expertise developed over many years. The whistleblower identified patterns among publicly available information that allowed the Commission to quickly identify and prevent wrongdoing and to preserve assets, which led to a successful enforcement action.