InfoBytes Blog
SEC whistleblower awards total $10.4 million
On November 22, the SEC announced awards totaling approximately $10.4 million to several whistleblowers who provided original information and voluntary assistance in three separate SEC enforcement actions. According to the first redacted order, the SEC awarded two whistleblowers roughly $7.5 million for providing original, significant information leading to a successful action and alerting staff to misconduct occurring in different geographic areas. Both whistleblowers’ substantial, ongoing assistance also conserved significant Commission time and resources. Additionally, the first whistleblower received an award for contributing to a related action brought by another agency. In the second redacted order, the SEC awarded more than $2.4 million to two whistleblowers whose information led to a successful enforcement action. According to the SEC, the first whistleblower voluntarily provided information prompting the opening of the investigation and provided significant assistance throughout the investigation by providing key pieces of evidence. The second whistleblower provided new information that significantly contributed to the success of the enforcement action. In the third redacted order, the SEC awarded whistleblowers roughly $435,000. The first whistleblower alerted SEC staff to potentially fraudulent conduct, which helped prompt the opening of the investigation, and provided additional information during the investigation. The second whistleblower met with SEC staff and provided new, highly valuable information early in the investigation that was vital in helping the staff develop its theory of liability.
The SEC has awarded approximately $1.2 billion to 233 individuals since issuing its first award in 2012.