Skip to main content
Menu Icon
Close

InfoBytes Blog

Financial Services Law Insights and Observations

SEC bans two individuals from whistleblower program

Securities SEC Whistleblower

Securities

On September 28, the SEC announced that it permanently barred two individuals, pursuant to the 2020 amendments to the Whistleblower Program Rules, from the SEC's whistleblower award program due to filing hundreds of frivolous award applications. According to both orders (see here and here), the individuals submitted award applications to the Commission that had no relation to the enforcement action for which they were applying, and refused to stop submitting the filings after repeatedly warned to do so. According to the SEC, the filing of the applications took considerable time and resources from Commission staff, hindered the effective operation of the program, and did not lead to any enforcement action. The permanent bars imposed in these matters pertain to pending award applications from the individuals, and to all future award applications submitted by the individuals.