March 8, 2022 —
The Securities and Exchange Commission today announced an award of more than $3.5 million to a whistleblower who provided critical information that significantly contributed to the success of two SEC enforcement actions.
The whistleblower’s information prompted SEC staff to further investigate certain potential securities violations, saved SEC staff time and resources, and helped advance settlement discussions.
“Whistleblowers play an integral role in the agency’s enforcement efforts and protection of investors,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower. “In fiscal year 2022 alone, the SEC has awarded more than $143 million to whistleblowers who provided high-quality information and assistance that led to the success of enforcement actions.”
The SEC has awarded approximately $1.2 billion to 248 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 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 any information that could reveal a whistleblower’s identity.
The attorneys at Sallah Astarita & Cox, LLC include former SEC attorneys and broker-dealer lawyers, who know their way around these rules and regulations. They help whistleblowers present their information to the SEC and guide them through the process, including presentations to the Commission, at no cost unless there is compensation to our client. If you believe you have a whistleblower claim, give us a call at 212-509-6544, or email Mark Astarita at email@example.com
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