SEC Issues Awards Totaling More Than $15 Million to Two Whistleblowers
The Securities and Exchange Commission (SEC) awarded over $12
The Securities and Exchange Commission (SEC) awarded over $12.5 million and $2.5 million to two whistleblowers for providing information that led to a successful enforcement action against a fraudulent scheme. The first whistleblower provided critical information that prompted the investigation, while the second offered more limited assistance. These payments are funded by an investor protection account derived from monetary sanctions paid by violators, totaling approximately $1.1 billion awarded since 2012.
The Securities and Exchange Commission (SEC) awarded over $12.5 million and $2.5 million to two whistleblowers for providing information that led to a successful enforcement action against a fraudulent scheme. The first whistleblower provided critical information that prompted the investigation, while the second offered more limited assistance. These payments are funded by an investor protection account derived from monetary sanctions paid by violators, totaling approximately $1.1 billion awarded since 2012. The SEC announced awards totaling $15 million to two whistleblowers whose tips facilitated a successful enforcement action against a fraudulent scheme, though the specific defendant and exact misconduct details are not identified in the text. The first whistleblower received over $12.5 million for alerting staff to the fraud and prompting the investigation, while the second received $2.5 million for providing supplementary information that aided the case's success. These payments, funded entirely by monetary sanctions from violators rather than harmed investors, highlight the SEC's commitment to its whistleblower program, which has distributed approximately $1.1 billion to 226 individuals since 2012. The resolution involved the issuance of these awards under the Dodd-Frank Act, which mandates payments ranging from 10% to 30% of collected sanctions exceeding $1 million when the information leads to a successful enforcement action. The SEC awarded $12.5 million and $2.5 million to two whistleblowers whose tips led to a successful enforcement action against a fraudulent scheme, though the specific violator was not named. The first whistleblower initiated the investigation by exposing the fraud, while the second provided supporting information that contributed to the case’s success. The awards, totaling $15 million, were paid from the Investor Protection Fund, funded solely by penalties collected from securities law violators—not harmed investors. The SEC emphasized that whistleblowers may receive 10–30% of sanctions exceeding $1 million, and confidentiality is strictly protected under the Dodd-Frank Act. Since 2012, the SEC has awarded approximately $1.1 billion to 226 whistleblowers.
Exhibits & Attached Documents (1)
Extracted insights
- $1.10B $1.1 billion ≥$1B
- $12.50M $12.5 million $10M–$100M
- $2.50M $2.5 million $1M–$10M
- $1.00M $1 million $1M–$10M
- agency acting chief of the sec's office of the whistleblower
- person emily pasquinelli
- person first whistleblower
- company investor protection fund
- agency monetary sanctions paid to sec by securities law violators
- agency opening of an sec investigation
- agency sec commission staff to a fraudulent scheme
- person second whistleblower
- agency Securities and Exchange Commission
- agency success of the sec enforcement action
- person whistleblower awards
- SEC announced awards of $12.5 million and $2.5 million to two whistleblowers
- First Whistleblower alerted SEC Commission staff to a fraudulent scheme
- First Whistleblower prompted opening of an SEC investigation
- Second Whistleblower provided information that helped lead to success of the SEC enforcement action
- Emily Pasquinelli is Acting Chief of the SEC's Office of the Whistleblower
- SEC has awarded approximately $1.1 billion to 226 individuals since 2012
- Whistleblower Awards can range from 10-30% of money collected when sanctions exceed $1 million
- Dodd-Frank Act requires SEC to protect confidentiality of whistleblowers
- SEC issued first whistleblower award in 2012
- Investor Protection Fund is financed by monetary sanctions paid to SEC by securities law violators
The Securities and Exchange Commission today announced awards of more than $12.5 million and $2.5 million to two whistleblowers whose information and assistance led to a successful SEC enforcement action. The first whistleblower alerted Commission staff to a fraudulent scheme and prompted the opening of an investigation. The second whistleblower’s information was more limited but also helped lead to the success of the enforcement action. "These whistleblowers provided critical information and substantial assistance to the Commission staff in the underlying investigation," said Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower. "These awards demonstrate the SEC’s commitment to rewarding whistleblowers who provide high-quality tips that help protect investors." The SEC has awarded approximately $1.1 billion to 226 individuals since issuing its first award in 2012. All payments are made out of an investor protection fund established by Congress that 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 10-30% 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 $12.5 million and $2.5 million to two whistleblowers whose information and assistance led to a successful SEC enforcement action. The first whistleblower alerted Commission staff to a fraudulent scheme and prompted the opening of an investigation. The second whistleblower’s information was more limited but also helped lead to the success of the enforcement action. "These whistleblowers provided critical information and substantial assistance to the Commission staff in the underlying investigation," said Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower. "These awards demonstrate the SEC’s commitment to rewarding whistleblowers who provide high-quality tips that help protect investors." The SEC has awarded approximately $1.1 billion to 226 individuals since issuing its first award in 2012. All payments are made out of an investor protection fund established by Congress that 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 10-30% 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.