Today, the U.S. Securities and Exchange Commission (SEC) announced whistleblower awards totaling nearly $6 million issued to two anonymous individuals whose valuable inside information led to successful enforcement actions brought on by the SEC.
In the first award order, the SEC noted that the whistleblower, a foreign national, alerted enforcement staff to securities law violations and helped identify a key witness in the fraud. This whistleblower traveled to meet SEC staff in person and provided multiple submissions that led to successful enforcement actions. This SEC whistleblower received an award of more than $3.5 million.
Per the second award order, another whistleblower alerted Commission staff to securities law violations after initially internally reporting frauds. This whistleblower helped the SEC by providing crucial documents and identifying potential witnesses. The whistleblower from the second award order received a $2.4 million award.
Since issuing its first award in 2012, the SEC Whistleblower Program has awarded approximately $956 million to 195 individuals.
Under the Dodd Frank Act, SEC whistleblowers can remain fully anonymous and confidential in their proceedings before the SEC Whistleblower Office. Using a whistleblower attorney, claimants can file for an award using a Form TCR. This will allow for the whistleblower to protect their identity from their employer and avoid potential retaliation.
“With today’s orders, the SEC has made whistleblower awards to 14 individuals in less than a month, reflecting the SEC’s commitment to reward whistleblowers who provide new, critical information that leads to successful enforcement actions,” said Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower.