SEC Issues Largest-Ever Whistleblower Award
A whistleblower received a record $279 million award from the SEC for providing information that led to successful enforcement actions, resulting in over $4 billion in disgorged ill-gotten gains and interest.
The SEC awarded a record $279 million to a whistleblower whose information and assistance led to successful enforcement actions. The award, funded by sanctions paid by violators, not harmed investors, is the largest in the SEC's whistleblower program's history, more than doubling the prior record of $114 million. The enforcement actions resulted in over $4 billion in disgorgement overall.
The Securities and Exchange Commission (SEC) announced a record-breaking whistleblower award of nearly $279 million, the largest in the program's history, surpassing the previous record of $114 million. This payment was made to an individual whose sustained assistance and information significantly expanded the scope of misconduct charged in successful enforcement actions, contributing to the disgorgement of over $4 billion in ill-gotten gains. The award, funded entirely by monetary sanctions from securities law violators rather than harmed investors, underscores the SEC’s commitment to incentivizing the reporting of potential securities law violations. The whistleblower provided multiple interviews and written submissions that helped secure enforcement actions, though their tip did not initiate the investigation. The award falls within the Dodd-Frank Act’s 10–30% range for tips leading to sanctions exceeding $1 million, and the SEC protected the whistleblower’s identity throughout. This landmark payout reflects the tremendous success of the SEC’s whistleblower program, which has contributed to enforcement actions resulting in orders requiring bad actors to disgorge more than $4 billion in ill-gotten gains and interest.
Exhibits & Attached Documents (1)
Extracted insights
- $4.00B $4 billion ≥$1B
- $279.00M $279 million $100M–$1B
- $114.00M $114 million $100M–$1B
- $1.00M $1 million $1M–$10M
- person creola kelly
- agency entirely through monetary sanctions paid to the sec by securities law violators
- person gurbir s. grewal
- company investor protection fund
- agency Securities and Exchange Commission
- agency successful enforcement of sec and related actions
- person whistleblower tips
- Securities and Exchange Commission announced largest-ever award of nearly $279 million to a whistleblower
- Whistleblower information and assistance led to successful enforcement of SEC and related actions
- SEC issued $114 million whistleblower award in October 2020
- Gurbir S. Grewal said size of today’s award incentivizes whistleblowers
- Whistleblower tips have contributed to enforcement actions resulting in orders requiring bad actors to disgorge more than $4 billion
- Creola Kelly said whistleblower’s sustained assistance was critical to the success of these actions
- Whistleblower’s information expanded scope of misconduct charged
- Payments to whistleblowers are made out of an investor protection fund established by Congress
- Investor protection fund is financed entirely through monetary sanctions paid to the SEC by securities law violators
- Whistleblowers may be eligible for award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action
The Securities and Exchange Commission today announced the largest-ever award, nearly $279 million, to a whistleblower whose information and assistance led to the successful enforcement of SEC and related actions. This is the highest award in the SEC’s whistleblower program’s history, more than doubling the $114 million whistleblower award the SEC issued in October 2020. "The size of today’s award – the highest in our program’s history – not only incentivizes whistleblowers to come forward with accurate information about potential securities law violations, but also reflects the tremendous success of our whistleblower program," said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement. "This success directly benefits investors, as whistleblower tips have contributed to enforcement actions resulting in orders requiring bad actors to disgorge more than $4 billion in ill-gotten gains and interest. As this award shows, there is a significant incentive for whistleblowers to come forward with accurate information about potential securities law violations." "The whistleblower’s sustained assistance including multiple interviews and written submissions was critical to the success of these actions," said Creola Kelly, Chief of the SEC’s Office of the Whistleblower. "While the whistleblower’s information did not prompt the opening of the Commission’s investigation, their information expanded the scope of misconduct charged." 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. No money has been taken or withheld from harmed investors to pay whistleblower awards. 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, and adhere to filing requirements in the whistleblower rules. 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 https://www.sec.gov/whistleblower.
The Securities and Exchange Commission today announced the largest-ever award, nearly $279 million, to a whistleblower whose information and assistance led to the successful enforcement of SEC and related actions. This is the highest award in the SEC’s whistleblower program’s history, more than doubling the $114 million whistleblower award the SEC issued in October 2020. "The size of today’s award – the highest in our program’s history – not only incentivizes whistleblowers to come forward with accurate information about potential securities law violations, but also reflects the tremendous success of our whistleblower program," said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement. "This success directly benefits investors, as whistleblower tips have contributed to enforcement actions resulting in orders requiring bad actors to disgorge more than $4 billion in ill-gotten gains and interest. As this award shows, there is a significant incentive for whistleblowers to come forward with accurate information about potential securities law violations." "The whistleblower’s sustained assistance including multiple interviews and written submissions was critical to the success of these actions," said Creola Kelly, Chief of the SEC’s Office of the Whistleblower. "While the whistleblower’s information did not prompt the opening of the Commission’s investigation, their information expanded the scope of misconduct charged." 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. No money has been taken or withheld from harmed investors to pay whistleblower awards. 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, and adhere to filing requirements in the whistleblower rules. 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 https://www.sec.gov/whistleblower.