SEC Whistleblower Receives $2.5 Million Award for Independent Analysis

On June 9, the U.S. Securities and Exchange Commission (SEC) issued a $2.5 million whistleblower award to an individual who voluntarily provided the agency with original information that led to a successful enforcement action.

According to the award order, the whistleblower “made multiple submissions, including early in the Covered Action investigation, which included both independent knowledge and independent analysis.”

Through the SEC Whistleblower Program, qualified whistleblowers are entitled to monetary awards of 10-30% of the funds collected by the government in the enforcement action connected to their whistleblowing.

In determining the exact percentage to award a whistleblower, the SEC weighs a number of factors, including the degree of further assistance provided by the whistleblower, the significance of the whistleblower’s information, and the promptness with which the whistleblower made their disclosure after becoming aware of the misconduct.

The award order notes that the whistleblower “provided continuing assistance, including participating in calls with investigative staff for the Covered Action” and that the whistleblower’s information “significantly contributed to the success of the Covered Action by helping advance and expedite the Covered Action investigation.”

Earlier in 2023, the SEC issued the largest whistleblower award in agency history. A $279 million award was granted on May 5 to an individual who provided information and assistance that led to a successful SEC enforcement action and related actions by other agencies.

Since 2011, the SEC Whistleblower Program has awarded over $1.5 billion to over 300 whistleblowers. SEC whistleblower tips have resulted in over $6.3 billion in total monetary sanctions, of which more than $1.5 billion has been, or is scheduled to be, returned to harmed investors.