Yesterday, the Securities and Exchange Commission (SEC) announced a $500,000 whistleblower award issued to two whistleblowers who provided tips that led to investigations by multiple agencies. The two SEC whistleblowers in this case will split the award evenly.
According to the award order, both whistleblowers provided “substantial, ongoing assistance that focused the investigation” and saved the SEC significant time and resources. The award order also noted that there was substantial law enforcement interest in the information provided, as it related to an ongoing fraud.
Since 2012, the SEC Whistleblower Program has awarded approximately $753 million to 140 whistleblowers.
SEC whistleblowers who provide the Commission with original evidence of fraud that results in successful enforcement actions that bring in over $1 million in sanctions can become eligible for awards ranging between 10-30% of the monies collected.
The Dodd Frank Act protects the confidentiality and identity of whistleblowers who file award claims with the SEC.
“This case demonstrates once again the value of the whistleblower program in helping to protect investors, and the Commission’s continued commitment to rewarding individuals who provide high-quality tips,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “The timely reporting of credible information by these whistleblowers provided the Commission the opportunity to quickly investigate and address misconduct that was actively harming investors.”