SEC Awards More Than $37 Million to Whistleblower
A whistleblower received an award of more than $37 million for providing information that led to a successful SEC enforcement action against a company for securities misconduct.
The SEC awarded more than $37 million to a whistleblower whose original, timely information triggered internal and regulatory investigations into securities misconduct. The whistleblower received credit for the investigations because they provided the same information to the SEC within 120 days of internal disclosure. The award falls within the 10–30% range for sanctions exceeding $1 million, funded by the Investor Protection Fund through penalties paid by violators.
A whistleblower received an award of more than $37 million for providing information that led to a successful SEC enforcement action against a company for securities misconduct. The whistleblower's original, timely information triggered internal and regulatory investigations, including actions by the SEC and another agency. Although the company later self-reported the conduct, the whistleblower received credit because they provided the same information to the SEC within 120 days of internal disclosure, satisfying Dodd-Frank requirements. The award falls within the 10–30% range for sanctions exceeding $1 million, funded by the Investor Protection Fund through penalties paid by violators, not harmed investors. The SEC emphasized the whistleblower's persistent efforts in exposing the misconduct and protected their identity, as required by law. The award is a result of the SEC's whistleblower program, which provides incentives for individuals to report securities law violations.
Exhibits & Attached Documents (1)
Extracted insights
- $37.00M $37 million $10M–$100M
- $1.00M $1 million $1M–$10M
- agency bring conduct to attention of sec, another agency, and the company
- company investor protection fund
- agency monetary sanctions paid to sec by securities law violators
- agency Securities and Exchange Commission
- agency sec within 120 days
- person whistleblower awards
- SEC announced award of more than $37 million to a whistleblower
- Whistleblower provided information SEC within 120 days
- Whistleblower made persistent efforts bring conduct to attention of SEC, another agency, and the company
- Payments are made out of investor protection fund
- Investor Protection Fund is financed by monetary sanctions paid to SEC by securities law violators
- Whistleblower Awards can range from 10 to 30 percent of money collected when sanctions exceed $1 million
- SEC protects confidentiality of whistleblowers
The Securities and Exchange Commission today announced an award of more than $37 million to a whistleblower whose information led to a successful SEC enforcement action and a related action. The whistleblower was the initial source of the company’s internal investigation, as well as the source for investigations by the SEC and another agency. While the company reported the alleged conduct to the SEC and the other agency, the whistleblower receives credit for the investigations being initiated because the whistleblower provided the same information to the SEC within 120 days of providing it internally. "The whistleblower here made persistent efforts to bring the conduct to the attention of the SEC, another agency, and the company and is credited with the results of the company’s internal investigation," said Creola Kelly, Chief of the SEC’s Office of the Whistleblower. 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. 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 an award of more than $37 million to a whistleblower whose information led to a successful SEC enforcement action and a related action. The whistleblower was the initial source of the company’s internal investigation, as well as the source for investigations by the SEC and another agency. While the company reported the alleged conduct to the SEC and the other agency, the whistleblower receives credit for the investigations being initiated because the whistleblower provided the same information to the SEC within 120 days of providing it internally. "The whistleblower here made persistent efforts to bring the conduct to the attention of the SEC, another agency, and the company and is credited with the results of the company’s internal investigation," said Creola Kelly, Chief of the SEC’s Office of the Whistleblower. 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. 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.