In the Matter of the Claim for Award
summary
The SEC approved a $6 million whistleblower award for joint claimants whose original information led to a successful enforcement action involving securities law violations.
paragraph
The Securities and Exchange Commission ordered a joint whistleblower award of approximately $6 million to be paid to joint claimants. The award is based on a percentage of the monetary sanctions collected in a redacted covered action. The Commission determined the claimants' information was instrumental in triggering a Division of Examinations examination and subsequent enforcement investigation.
narrative
The Securities and Exchange Commission has approved a whistleblower award of approximately $6 million for a group of joint claimants. These claimants voluntarily provided original information that led to the successful enforcement of a covered action involving securities law violations. The Commission found that the claimants' tips served as a roadmap for the Division of Examinations and Enforcement Staff, directly contributing to the investigation and the collection of monetary sanctions. In determining the award, the Commission evaluated factors under Rule 21F-6, including the significance of the information and the assistance provided. The claimants were treated as a single entity for the award because they presented themselves as a team and shared legal counsel. While the specific details of the underlying fraud and the parties involved remain redacted, the award recognizes the claimants' critical role in the enforcement process.
Classified unclassified. No EDGAR filing fingerprint (criminal/DOJ-side scheme). detection rule →
Statutes
15 U.S.C. § 78u-6(b)Rule 21F-3(a)Rule 21F-6
Parties
claims review staffenforcement staffjoint claimants
Keywords
joint claimantscovered actionawardjointclaimantscommissionwhistleblower awardwhistleblowercoveredactionexchangeinformationmatter claimclaim awardsecurities exchange
Extracted insights
Dollar amounts 1
- $6.00M $6 million $1M–$10M
Entities 3
- person claims review staff
- person enforcement staff
- person joint claimants
Triples 6
- Claims Review Staff issued Preliminary Determination recommending that Joint Claimants receive a whistleblower award
- Joint Claimants will receive approximately $6 million award
- Joint Claimants provided original information to the Commission
- Joint Claimants' information caused Commission Division of Examinations to open a Commission Examination
- Exams referred the Commission Examination to Enforcement Staff
- Enforcement Staff found the referral from Exams helpful as a roadmap to the investigation
Text layers
Extracted body text (3,857c)
______________________________________________________________________________
UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 102896 / April 21, 2025
WHISTLEBLOWER AWARD PROCEEDING
File No. 2025- 25
______________________________________________________________________________
In the Matter of the Claim for Award
in connection with
Redacted
Redacted
Notice of Covered Action
Redacted
ORDER DETERMINING WHISTLEBLOWER AWARD CLAIM
The Claims Review Staff (“CRS”) issued a Preliminary Determination recommending
that joint claimants (together, “Joint
Claimants”) receive a joint whistleblower award in the amount of percent ( %) of the
Redacted
******
monetary sanctions collected in the above-referenced covered action (“Covered Action”).
1
This
will result in an award of approximately $6 million to Joint Claimants.
The recommendation of the CRS is adopted. The record demonstrates that Joint
Claimants voluntarily provided original information to the Commission and that this information
led to the successful enforcement of the Covered Action.
2
Further, the record reflects that (1)
1
We have determined to treat Joint Claimants jointly as a “whistleblower” for purposes of the award
determination given that they: presented themselves as a team in several submissions to the Commission and in their
whistleblower award applications; and have been represented by the same whistleblower counsel when submitting
written submissions of information to the Commission, interacting with Enforcement Staff, and in submitting their
whistleblower award applications. See Securities Exchange Act of 1934 (“Exchange Act”) Section 21F(a)(6)
(defining “whistleblower” to mean “2 or more individuals acting jointly who provide, information relating to a
violation of the securities laws to the Commission”).
2
See Exchange Act Section 21-F(b)(1), 15 U.S.C. § 78u-6(b)(1); Exchange Act Rule 21F-3(a), 17 C.F.R.
§ 240
.21F-3(a
).
Joint Claimants’ information caused the Commission’s Division of Examinations (“Exams”) to
open an examination (“Commission Examination”); (2) Joint Claimants’ tip and supplemental
submissions were helpful in connection with the Commission Examination as well as Exams’
ultimate examination findings; (3) Exams referred the Commission Examination to Enforcement
Staff, and Enforcement Staff found the referral from Exams to be helpful as a roadmap to the
investigation that resulted in the Covered Action; and (4) certain of the allegations in the
Covered Action were based, in part, on the conduct alleged by the Joint Claimants.
In light of these considerations and the relevant factors specified in Rule 21F-6,
***
percent (
***
3
it is
appropriate that Joint Claimants receive an award of %) of the monetary
sanctions collected in the Covered Action.
Accordingly, it is hereby ORDERED that Joint Claimants shall receive an award of
percent (
***
%) of the monetary sanctions collected in the Covered Action.
Redacted
By the Commission.
Vanessa A. Countryman
Secretary
In determining the amount of the award to Joint Claimants, we considered the following factors set forth in
Rule 21F-6 of the Exchange Act as they apply to the facts and circumstances of Joint Claimants’ application: (1) the
significance of information provided; (2) the assistance provided; (3) the law enforcement interest in deterring
violations by granting awards; (4) participation in internal compliance systems; (5) culpability; (6) unreasonable
reporting delay; and (7) interference with internal compliance and reporting systems.
2
3 OCR text (3,447c · tika+glm · 85% conf)
UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 102896 / April 21, 2025 WHISTLEBLOWER AWARD PROCEEDING File No. 2025- 25 In the Matter of the Claim for Award in connection with Redacted Redacted Notice of Covered Action Redacted ORDER DETERMINING WHISTLEBLOWER AWARD CLAIM The Claims Review Staff (“CRS”) issued a Preliminary Determination recommending that joint claimants Redacted (together, “Joint Claimants”) receive a joint whistleblower award in the amount of *** percent (***%) of the monetary sanctions collected in the above-referenced covered action (“Covered Action”).1 This will result in an award of approximately $6 million to Joint Claimants. The recommendation of the CRS is adopted. The record demonstrates that Joint Claimants voluntarily provided original information to the Commission and that this information led to the successful enforcement of the Covered Action.2 Further, the record reflects that (1) 1 We have determined to treat Joint Claimants jointly as a “whistleblower” for purposes of the award determination given that they: presented themselves as a team in several submissions to the Commission and in their whistleblower award applications; and have been represented by the same whistleblower counsel when submitting written submissions of information to the Commission, interacting with Enforcement Staff, and in submitting their whistleblower award applications. See Securities Exchange Act of 1934 (“Exchange Act”) Section 21F(a)(6) (defining “whistleblower” to mean “2 or more individuals acting jointly who provide, information relating to a violation of the securities laws to the Commission”). 2 See Exchange Act Section 21-F(b)(1), 15 U.S.C. § 78u-6(b)(1); Exchange Act Rule 21F-3(a), 17 C.F.R. § 240.21F-3(a). --- Joint Claimants’ information caused the Commission’s Division of Examinations (“Exams”) to open an examination (“Commission Examination”); (2) Joint Claimants’ tip and supplemental submissions were helpful in connection with the Commission Examination as well as Exams’ ultimate examination findings; (3) Exams referred the Commission Examination to Enforcement Staff, and Enforcement Staff found the referral from Exams to be helpful as a roadmap to the investigation that resulted in the Covered Action; and (4) certain of the allegations in the Covered Action were based, in part, on the conduct alleged by the Joint Claimants. In light of these considerations and the relevant factors specified in Rule 21F-6,3 it is appropriate that Joint Claimants receive an award of *** percent (***%) of the monetary sanctions collected in the Covered Action. Accordingly, it is hereby ORDERED that Joint Claimants shall receive an award of *** percent (***%) of the monetary sanctions collected in the Covered Action. By the Commission. Vanessa A. Countryman Secretary 3 In determining the amount of the award to Joint Claimants, we considered the following factors set forth in Rule 21F-6 of the Exchange Act as they apply to the facts and circumstances of Joint Claimants’ application: (1) the significance of information provided; (2) the assistance provided; (3) the law enforcement interest in deterring violations by granting awards; (4) participation in internal compliance systems; (5) culpability; (6) unreasonable reporting delay; and (7) interference with internal compliance and reporting systems.