In the Matter of the Claim for an Award
A whistleblower received over $2 million from the SEC for providing original information that triggered successful SEC and DOJ enforcement actions, with the award based on monetary sanctions collected in a related DOJ action under amended rules allowing DOJ settlements to qualify as eligible 'related actions'.
The SEC awarded a whistleblower more than $2 million, representing a percentage of monetary sanctions collected in a related Department of Justice (DOJ) enforcement action. The whistleblower voluntarily provided original information that prompted simultaneous investigations by both the SEC and DOJ, and offered extensive, ongoing cooperation throughout the proceedings. Under amendments to the Whistleblower Rules effective December 2020, DOJ settlements entered after July 21, 2010 qualify as 'related actions' eligible for SEC whistleblower awards, which the Commission applied in this case.
The U.S. Securities and Exchange Commission (SEC) awarded a whistleblower over $2 million for providing original information that led to successful enforcement actions by both the SEC and the Department of Justice (DOJ). The whistleblower voluntarily disclosed the information that prompted the opening of both investigations and provided extensive, ongoing assistance throughout the proceedings. The award was calculated as a percentage of the monetary sanctions collected in the related DOJ action, which qualifies under the SEC’s whistleblower program as amended in December 2020 to include DOJ settlements entered after July 21, 2010 as eligible 'related actions'. The Claims Review Staff recommended the award, and the whistleblower did not contest the preliminary determination, leading the SEC to formally adopt the recommendation. The order confirms that the whistleblower’s information was the catalyst for the enforcement actions and that the award complies with Rule 21F-3(b) and Rule 21F-4(d)(3)(i). While the specific nature of the fraud, the entities involved, and the exact dollar amount of sanctions remain redacted, the legal framework and procedural basis for the award are clearly established. This case underscores the SEC’s commitment to incentivizing whistleblowers whose disclosures enable cross-agency enforcement actions under the expanded whistleblower program.
Extracted insights
- $2.00M $2,000,000 $1M–$10M
- person claims review staff
- person deputy secretary
- agency doj agreement
- agency extensive ongoing assistance in doj and sec investigations
- agency original information to doj and sec
- agency Securities and Exchange Commission
- person whistleblower rules amendments
- Claimant receive Whistleblower Award Of More Than $2,000,000
- Claimant provided Original Information To DOJ And SEC
- Information From Claimant led to Successful Enforcement Of Related Action
- Claimant provided Extensive Ongoing Assistance In DOJ And SEC Investigations
- Whistleblower Rules Amendments became effective December 7, 2020
- DOJ Agreement entered into after July 21, 2010
- SEC issued Release No. 93465 On October 29, 2021
- Claims Review Staff recommended Whistleblower Award Of More Than $2,000,000
- Eduardo A. Aleman signed as Deputy Secretary
UNITED STATES OF AMERICA before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 93465 / October 29, 2021 WHISTLEBLOWER AWARD PROCEEDING File No. 2022-11 In the Matter of the Claim for an Award in connection with ORDER DETERMINING WHISTLEBLOWER AWARD CLAIM The Claims Review Staff (“CRS”) issued a Preliminary Determination recommending that Claimant receive a whistleblower award of more than $2,000,000, equal to percent ( %) of collected monetary sanctions in connection with the (“Related Action”). Claimant previously received a whistleblower award in connection with the SEC Covered Action Claimant provided written notice of Claimant’s decision not to contest the Preliminary Determination for the Related Action. The recommendation of the CRS for the Related Action is adopted. The record demonstrates that Claimant voluntarily provided the same original information to the DOJ and the Commission, and that information led to the successful enforcement of the Related Action. 2 Claimant provided information that prompted the opening of the DOJ and SEC investigations, and Claimant provided extensive, ongoing assistance in the investigations. Accordingly, it is hereby ORDERED that Claimant shall receive an award of ( %) of the monetary sanctions collected or to be collected in the Related Action. By the Commission. Eduardo A. Aleman Deputy Secretary
UNITED STATES OF AMERICA before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 93465 / October 29, 2021 WHISTLEBLOWER AWARD PROCEEDING File No. 2022-11 In the Matter of the Claim for an Award in connection with ORDER DETERMINING WHISTLEBLOWER AWARD CLAIM The Claims Review Staff (“CRS”) issued a Preliminary Determination recommending that Claimant receive a whistleblower award of more than $2,000,000, equal to percent ( %) of collected monetary sanctions in connection with the (“Related Action”). Claimant previously received a whistleblower award in connection with the SEC Covered Action Claimant provided written notice of Claimant’s decision not to contest the Preliminary Determination for the Related Action. The recommendation of the CRS for the Related Action is adopted. The record demonstrates that Claimant voluntarily provided the same original information to the DOJ and the Commission, and that information led to the successful enforcement of the Related Action. 2 Claimant provided information that prompted the opening of the DOJ and SEC investigations, and Claimant provided extensive, ongoing assistance in the investigations. Accordingly, it is hereby ORDERED that Claimant shall receive an award of ( %) of the monetary sanctions collected or to be collected in the Related Action. By the Commission. Eduardo A. Aleman Deputy Secretary