SEC Announces Two Whistleblower Awards Worth $3 Million

The US Securities and Exchange Commission (SEC) announced two different whistleblower awards with a total payment of over $3 million in an effort to extend its support to cooperating informants.

The commission has awarded the payments in two different orders. In the first one, the SEC awarded around $2.2 million to a whistleblower who provides important, high-quality information that aided an investigation. The whistleblower's tip helped the SEC bring an enforcement action that resulted in the return of millions of dollars to harmed clients.

According to the official announcement, the SEC awarded almost $700,000 to another whistleblower who alerted SEC staff to a fraudulent reporting scheme, prompting the opening of the investigation. The whistleblower provided critical evidence to the staff, and helped identify key documents and witnesses.

“Both whistleblowers who received awards today raised their concerns internally and then timely reported those concerns to the Commission,” said Jane Norberg, Chief of the SEC's Office of the Whistleblower. “The return of millions of dollars to harmed clients in one matter, and the uncovering of a fraudulent scheme in the other matter, underscore the tremendous value that whistleblowers provide.”

The SEC has awarded approximately $741 million to 136 individuals since issuing its first award in 2012. All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators.