Two Whistleblowers Receives More Than $4.3 Million Award from SEC

The Securities and Exchange Commission（SEC） today announced over $4.3 million awards to two whistleblowers whose specific, credible, and timely information led the Commission to open an investigation, and whose continued assistance helped lead to a successful enforcement action.

A whistleblower based overseas first alerted the SEC to the wrongdoers' fraudulent activity and continued to provide important information and documents the Division of Enforcement may not have otherwise obtained. The Commission awarded over $3.6 million to the whistleblower for his substantial and ongoing assistance. The second whistleblower, based in the U.S., subsequently provided the Commission with information about an ongoing fraud being perpetrated by the same wrongdoers as well as their efforts to avoid detection by the SEC. The whistleblower assisted Commission staff by meeting with them in person and explaining the likely mechanics of the fraudulent scheme. The whistleblower received $750,000 awards.

"Whistleblowers play an important role in helping to identify misconduct, and the assistance they provide can be integral to an investigation," said Jane Norberg, Chief of the SEC's Office of the Whistleblower. "Both whistleblowers who received awards today reflect these important contributions whistleblowers can make to the success of enforcement actions."

About the SEC's Whistleblower Program

The SEC has awarded approximately $719 million to 112 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. No money has been taken or withheld from harmed investors to pay whistleblower awards.

Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action. Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million.

As set forth in the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers and does not disclose information that could reveal a whistleblower's identity.