4 Whistleblowers Awarded $5 million by SEC for Cooperating in Frauds Investigation

Another 4 whistleblowers have been awarded for tipping off the United States Securities and Exchange Commission (SEC), and for their cooperation in bringing down justice to culprits, as part of an ongoing fraud investigation. SEC has awarded a total of $5 million to these four protected individuals.

The news came out this Wednesday. One out of the four tipsters was granted a $2.9 million award for giving away crucial information and evidence on very specific violations that helped bring down the fraudulent entity. Another former employee of the firm at hand was awarded $1.7 million for further assistance. Furthermore, a total of $400k was split between two unnamed whistleblowers that aided in SEC’s investigation of the scam and its architects.

SEC claims to have set a record in the amount of awards granted to whistleblower during the fiscal year. 39 tipsters were given paid monetary compensations for helping, in one way or another, to bring down scammer firms and individuals. A total of $175 million has been awarded in 2020.

The whistleblower initiative was started by SEC in early 2012, and since then has given away more than half a billion dollars in rewards ($562 million, to be exact) to 106 individuals.

Earlier this year, the Commodity Futures Trading Commission (CFTC) awarded a staggering $9 million award to one unnamed individual for helping the regulator crack down on a undisclosed scam.