SEC Issues $24 Million Awards to Two Whistleblowers
The SEC awarded over $24 million to two whistleblowers whose information regarding foreign misconduct led to successful enforcement actions by the SEC and another agency.
The SEC announced awards of $4 million and $20 million to two whistleblowers for providing critical information on misconduct occurring abroad. Their assistance facilitated an SEC enforcement action and an additional action by another agency. These payments are drawn from an investor protection fund financed by monetary sanctions from securities law violators.
The Securities and Exchange Commission announced more than $24 million in awards to two whistleblowers for their roles in successful enforcement actions. The first whistleblower received $4 million, while the second received $20 million due to their substantial cooperation. Their information was critical to uncovering misconduct that occurred abroad, which would have been otherwise difficult to obtain. These actions included an SEC enforcement action and a separate action brought by another agency. The awards are funded by the SEC’s investor protection fund, which is financed by sanctions paid by securities law violators. This outcome demonstrates the effectiveness of the whistleblower program in incentivizing the reporting of original and credible information.
Exhibits & Attached Documents (1)
Extracted insights
- $24.00M $24 million $10M–$100M
- $20.00M $20 million $10M–$100M
- $4.00M $4 million $1M–$10M
- $1.00M $1 million $1M–$10M
- company an investor protection fund
- person creola kelly
- person first whistleblower
- person second whistleblower
- agency Securities and Exchange Commission
- Securities And Exchange Commission announced awards of more than $24 million to two whistleblowers
- first whistleblower will receive an award of $4 million
- second whistleblower will receive an award of $20 million
- Creola Kelly said Today’s awards highlight the incredible public service provided by whistleblowers
- Congress established an investor protection fund
- SEC protects the confidentiality of whistleblowers
The Securities and Exchange Commission today announced awards of more than $24 million to two whistleblowers whose information and assistance led to an SEC enforcement action and an action brought by another agency. The first whistleblower will receive an award of $4 million, while the second whistleblower will receive an award of $20 million. While the first whistleblower reported first, prompting the opening of the investigation, the second whistleblower received the higher award, as their information and substantial cooperation proved critical to the success of the actions. “Today’s awards highlight the incredible public service provided by whistleblowers,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower. “The information would have been difficult to obtain in the absence of the whistleblowers as it pertained to conduct occurring abroad.” Payments to whistleblowers are made out of an investor protection fund, established by Congress, which is financed entirely through monetary sanctions paid to the SEC by securities law violators. Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action. Whistleblower awards can range from 10 to 30 percent of the money collected when the monetary sanctions exceed $1 million. As set forth in the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers and does not disclose any information that could reveal a whistleblower’s identity. For more information about the whistleblower program and how to report a tip, visit www.sec.gov/whistleblower.
The Securities and Exchange Commission today announced awards of more than $24 million to two whistleblowers whose information and assistance led to an SEC enforcement action and an action brought by another agency. The first whistleblower will receive an award of $4 million, while the second whistleblower will receive an award of $20 million. While the first whistleblower reported first, prompting the opening of the investigation, the second whistleblower received the higher award, as their information and substantial cooperation proved critical to the success of the actions. “Today’s awards highlight the incredible public service provided by whistleblowers,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower. “The information would have been difficult to obtain in the absence of the whistleblowers as it pertained to conduct occurring abroad.” Payments to whistleblowers are made out of an investor protection fund, established by Congress, which is financed entirely through monetary sanctions paid to the SEC by securities law violators. Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action. Whistleblower awards can range from 10 to 30 percent of the money collected when the monetary sanctions exceed $1 million. As set forth in the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers and does not disclose any information that could reveal a whistleblower’s identity. For more information about the whistleblower program and how to report a tip, visit www.sec.gov/whistleblower.