The Securities and Exchange Commission today announced awards of more than $12.5 million and $2.5 million to two whistleblowers whose information and assistance led to a successful SEC enforcement action.
The first whistleblower alerted Commission staff to a fraudulent scheme and prompted the opening of an investigation. The second whistleblower’s information was more limited but also helped lead to the success of the enforcement action.
“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. 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 10-30% 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.
Whistleblowers who have the assistance of an experienced securities attorney have a better chance for obtaining an award. For more information about the whistleblower program and to report a tip visit The Securities Lawyer or call them at 212-509-6544
Have a securities law question? Call Sallah Astarita & Cox at 212-509-6544.