US SEC Rewards More Than $15 Million to Two Whistleblowers

The US Securities and Exchange Commission (SEC) announced it has awarded more than $15 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 more than $12.5 million for alerting SEC's staff to a fraudulent scheme and prompting the opening of an investigation.

The second whistleblower, whose information was more limited but also helped lead to the success of the enforcement action, will receive an award of more than $2.5 million.

"These whistleblowers provided critical information and substantial assistance to the Commission staff in the underlying investigation,"said Emily Pasquinelli, Acting Chief of the SEC's Office of the Whistleblower."These awards demonstrate the SEC's commitment to rewarding whistleblowers who provide high-quality tips that help protect investors."

The SEC has awarded approximately $1.1 billion to 226 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.

This week, the commission has announced the appointments of Erica Y. Williams as Chairperson​ and Christina Ho, Kara M. Stein, and Anthony (Tony) C. Thompson as Board members of the Public Company Accounting Oversight Board (PCAOB).