Today, the Securities and Exchange Commission (SEC) announced a $30 million whistleblower award issued to two insiders who prompted the SEC to open an investigation. As a result of their reporting, tens of millions of dollars were returned to harmed investors.
The first whistleblower, who initially alerted the Commission to the potential fraud and provided ongoing assistance throughout the investigation, earned an award of approximately $22 million from the SEC. The second whistleblower provided additional information and earned an award of approximately $7 million.
“The $750 million dollars returned to harmed investors since 2010 is a direct result of the continued efforts of whistleblowers,” said whistleblower attorney Stephen M. Kohn, partner at the qui tam law firm Kohn, Kohn & Colapinto. “Time and time again, whistleblowing has been proven to work.”
The SEC has now issued over 100 whistleblower awards since the SEC Whistleblower Program was established under the Dodd Frank Act of 2010. SEC whistleblowers have now been granted over $550 million since the program started.
“The information and assistance provided by today’s whistleblowers helped the agency return tens of millions of dollars to harmed retail investors,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “We hope that awards like the ones issued by the Commission today will continue to incentivize individuals to come forward and report high-quality tips to the SEC.”