The SEC has announced that it has awarded more than $12 million to two whistleblowers who provided crucial information and assistance during a successful SEC enforcement action. This marks another milestone in the SEC’s commitment to protecting investors and the capital markets through its whistleblower program.
The first whistleblower who initiated the investigation and provided information on violations that would have otherwise been difficult to detect will receive more than $9 million. This individual identified key witnesses and helped the staff understand complex fact patterns and issues. They also made persistent efforts to remedy the issues, which was crucial in the SEC’s investigation.
On the other hand, the second whistleblower provided important new information during the investigation and will be awarded more than $3 million. Both whistleblowers played a critical role in helping the SEC detect and prosecute wrongdoing.
Whistleblowers are crucial to the SEC’s enforcement efforts by providing the agency with original, timely, and credible information. The information and assistance these two whistleblowers provided demonstrate the whistleblower program’s importance to the SEC’s enforcement efforts.
It is important to note that the investor protection fund established by Congress funds these payments to whistleblowers. This fund is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money is taken or withheld from harmed investors to pay whistleblower awards. Whistleblower awards range from 10 to 30 percent of the money collected when monetary sanctions exceed $1 million.
Whistleblowers who come forward and provide the SEC with credible information are protected by the Dodd-Frank Act. The SEC maintains the confidentiality of whistleblowers and does not disclose any information that could reveal a whistleblower’s identity.
The SEC has awarded more than $12 million to two whistleblowers who provided vital information and assistance in a successful SEC enforcement action. Whistleblowers play a crucial role in helping the SEC detect and prosecute wrongdoing and protect investors and the capital markets. The whistleblower program provides incentives for individuals to come forward with original, timely, and credible information. Payments to whistleblowers come from the investor protection fund and do not take away from harmed investors. The SEC maintains the confidentiality of whistleblowers to protect them from retaliation.
Whistleblowers who use a securities lawyer to file and process their tip have better results than those who go it alone. To speak to a whistleblower attorney to discuss filing a potential tip, call New York Securities Lawyers at 212-509-6544.
Have a securities law question? Call New York Securities Lawyers at 212-509-6544.
Mark Astarita is a nationally recognized securities attorney, who represents investors, financial professionals and firms in securities litigation, arbitration and regulatory matters, including SEC and FINRA investigations and enforcement proceedings.
He is a partner in the national securities law firm Sallah Astarita & Cox, LLC, and the founder of The Securities Law Home Page - SECLaw.com, which was one of the first legal topic sites on the Internet. It went online in 1995 and is updated daily with news, commentary and securities law related links.
