March 18, 2022 – the SEC announced three awards totaling approximately $3 million to whistleblowers who provided information and assistance in three separate covered actions.
$1.5 Million For New Information
In the first order, the SEC issued an award of approximately $1.5 million to a whistleblower who provided new information that caused the SEC staff to commence an examination and later open a new investigation into potential securities laws violations. The whistleblower also assisted the staff during the course of the investigation.
$1 Million for a Whistleblower Insider
In the second order, the SEC awarded a whistleblower more than $1 million for providing information that prompted the opening of an investigation. The whistleblower, an insider who also reported concerns internally, provided continuing assistance to the staff, including multiple interviews.
$400,000 for Whistleblower Insider
In the third order, the SEC awarded more than $400,000 to a whistleblower whose comprehensive tip led to an investigation, and thereafter provided substantial ongoing cooperation. The whistleblower also raised concerns internally, causing the conduct to cease.
Whistleblowers Help Detect Wrongdoing
“Whistleblowers are instrumental to the agency’s ability to detect wrongdoing,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower. “Each of today’s whistleblowers alerted SEC staff to the securities laws violations and then provided essential assistance that aided the investigation.”
Whistleblowers Have Received $1.2 Billion
The SEC has awarded approximately $1.2 billion to 254 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 percent 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 presentation of a whistleblower tip can make all of the difference in the success of the tip, and the compensation to the whistleblower. Knowing how to present the tip, and who to present it to, is critical. Having the experience and knowledge to know the ins and outs of the process can make a huge difference.
Plus, when using an attorney, it is possible for the whistleblower to remain anonymous.
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.
Have a securities law question? Call New York Securities Lawyers at 212-509-6544.