The Securities & Exchange Commission today announced awards of more than $104 million to seven individuals whose information & assistance led to a successful SEC enforcement action & related actions brought by another agency. Today’s combined award is the fourth largest in the SEC’s whistleblower program’s history.
The seven whistleblowers were composed of two sets of joint claimants & three single claimants, & each provided information that either prompted the opening of or significantly contributed to an SEC investigation. The seven individuals’ assistance to the staff included providing documents supporting the allegations of misconduct, sitting for interviews, & identifying potential witnesses.
“Today’s awards show that specific & credible information plays an integral part in the SEC’s enforcement efforts,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower. “These whistleblowers provided information that helped Enforcement staff detect & prosecute wrongdoing in a timely manner.”
Payments to whistleblowers are made out of an investor protection fund, established by Congress, which 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, & credible information that leads to a successful enforcement action, & adhere to filing requirements in the whistleblower rules. 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 & does not disclose any information that could reveal a whistleblower’s identity.
For more information about the whistleblower program & how to report a tip, visit www.sec.gov/whistleblower.