SEC Awards More Than $2 Million to Whistleblower for Successful Related Action
The SEC awarded a whistleblower over $2 million for original, timely tips that triggered SEC and DOJ investigations and a successful related DOJ action, after rule changes made such actions eligible for awards.
The U.S. Securities and Exchange Commission announced a whistleblower award of more than $2 million for information that prompted investigations by both the SEC and the Department of Justice and resulted in a successful related DOJ enforcement action. The whistleblower had already received an award for a prior SEC enforcement case based on the same tips, and the additional award was made possible by recent amendments that treat DOJ non‑prosecution and deferred‑prosecution agreements as “related actions” eligible for awards. The award is paid from the SEC’s Investor Protection Fund, which is funded solely by monetary sanctions on securities law violators, bringing total payouts since 2012 to about $1.1 billion for 224 individuals.
The SEC announced a whistleblower award exceeding $2 million after a tipster provided original, timely information that led to parallel investigations by the SEC and the Department of Justice. That information resulted in a successful related DOJ enforcement action, qualifying the whistleblower for an additional award under the agency’s rules. The whistleblower had previously received an award for a separate SEC enforcement case based on the same tips. Recent amendments to the whistleblower rule clarified that DOJ non‑prosecution and deferred‑prosecution agreements count as “related actions,” making the new award possible. All award payments come from the SEC’s Investor Protection Fund, which is financed exclusively by penalties paid by securities law violators. Since the program began in 2012, the SEC has paid roughly $1.1 billion to 224 whistleblowers.
Exhibits & Attached Documents (1)
Extracted insights
- $1.10B $1.1 billion ≥$1B
- $2.00M $2 million $1M–$10M
- $1.00M $1 million $1M–$10M
- agency contributions to sec enforcement action
- agency Department of Justice
- person emily pasquinelli
- agency investigations by sec and doj
- agency sec and doj investigations
- agency sec's office of the whistleblower
- agency Securities and Exchange Commission
- agency successful related action by u.s. department of justice
- person whistleblower awards
- SEC announced award of more than $2 million to whistleblower
- Whistleblower provided information that led to successful related action by U.S. Department of Justice
- Whistleblower previously received award for contributions to SEC enforcement action
- Whistleblower's information prompted opening of investigations by SEC and DOJ
- Whistleblower provided assistance to SEC and DOJ investigations
- Emily Pasquinelli is Acting Chief of SEC's Office of the Whistleblower
- SEC awarded approximately $1.1 billion to 224 individuals since 2012
- SEC issued first whistleblower award in 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
- DOJ entered into non-prosecution and deferred prosecution agreements
The Securities and Exchange Commission today announced an award of more than $2 million to a whistleblower who provided information that led to a successful related action by the U.S. Department of Justice. The whistleblower previously received an award for contributions to an SEC enforcement action based on the same information that supported the award for the related action, and was eligible for the award announced today due to recent amendments clarifying the types of actions that may be considered "related" under the whistleblower rules. The whistleblower's information prompted the opening of investigations by both the SEC and the DOJ. The whistleblower also provided extensive, ongoing assistance to both investigations. "The SEC's whistleblower rule amendments make clear that non-prosecution and deferred prosecution agreements entered into by the DOJ are related actions upon which whistleblowers may receive awards," said Emily Pasquinelli, Acting Chief of the SEC's Office of the Whistleblower. "Today's award demonstrates the SEC's commitment to award whistleblowers not only for their contributions to a successful SEC enforcement action but also for their contributions to qualifying related actions." The SEC has awarded approximately $1.1 billion to 224 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 an award of more than $2 million to a whistleblower who provided information that led to a successful related action by the U.S. Department of Justice. The whistleblower previously received an award for contributions to an SEC enforcement action based on the same information that supported the award for the related action, and was eligible for the award announced today due to recent amendments clarifying the types of actions that may be considered "related" under the whistleblower rules. The whistleblower's information prompted the opening of investigations by both the SEC and the DOJ. The whistleblower also provided extensive, ongoing assistance to both investigations. "The SEC's whistleblower rule amendments make clear that non-prosecution and deferred prosecution agreements entered into by the DOJ are related actions upon which whistleblowers may receive awards," said Emily Pasquinelli, Acting Chief of the SEC's Office of the Whistleblower. "Today's award demonstrates the SEC's commitment to award whistleblowers not only for their contributions to a successful SEC enforcement action but also for their contributions to qualifying related actions." The SEC has awarded approximately $1.1 billion to 224 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.