US SEC Rewards $40 Million to Two Whistleblowers

The US Securities and Exchange Commission (SEC) announced it has awarded approximately $40 million to two whistleblowers for providing high-quality information and assistance in SEC enforcement proceedings.

As detailed in the regulator's announcement, the first whistleblower received $32 million award for causing the opening of the investigation and exposing difficult-to-detect violations. He also provided substantial assistance to the staff, including identifying witnesses and helping the staff to understand complex fact patterns.

The second whistleblower, who submitted important new information during the course of the investigation but waited several years to report to the Commission, will receive an award of approximately $8 million.

"Today's whistleblowers underscore the importance of the SEC's whistleblower program to the agency's enforcement efforts,"said Emily Pasquinelli, Acting Chief of the SEC's Office of the Whistleblower. "These whistleblowers reported critical information that aided the Commission's investigation and provided extensive, ongoing cooperation that helped the Commission to stop the wrongdoing and protect the capital markets."

The SEC has awarded approximately $1.1 billion to 218 individuals since issuing its first award in 2012, including over $500 million in fiscal year 2021 alone.

Last week, the SEC announced that it has adopted amendments to modernize filing fee disclosure and payment methods​. Operating companies and investment companies pay filing fees when engaging in certain transactions.