Whistleblowers Receive Over $6 Million Award from SEC

The US Securities and Exchange Commission (SEC) announced that it has awarded joint whistleblowers with more than $6 million for the information and assistance led to the successful enforcement of SEC and related actions.

Specifically, the whistleblowers provided the SEC and another government agency with substantial assistance, including submitting documents, participating in interviews, and identifying key individuals involved in the misconduct.

“The whistleblowers' information led to multiple successful government actions related to a complex scheme involving several individuals and tens of millions of dollars in ill-gotten gains,” said Jane Norberg, Chief of the Office of the Whistleblower. “Today's award demonstrates the significant contributions whistleblowers make to investigations that can save the SEC and other government agencies substantial time and resources.”

To be eligible for award, a whistleblower needs to voluntarily provide the commission with reliable information that leads to successful enforcement action. The awards range between 10 and 30 % of the money collected by SEC when the sanction is for more than $1 million.

So far, the SEC has awarded more than $728 million to 118 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.

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.