SEC Awards Approximately $36 Million to Whistleblower
The SEC awarded $36 million to a whistleblower whose original, timely, and credible information on an illegal scheme significantly advanced both an SEC enforcement action and a related federal agency investigation, with the payment drawn from violator sanctions and no harm to investors.
The Securities and Exchange Commission awarded approximately $36 million to a whistleblower whose information and assistance were critical to the success of an SEC enforcement action and a parallel investigation by another federal agency. The whistleblower provided key documents, identified witnesses, and facilitated the exposure of an illegal scheme, qualifying for an award under the Dodd-Frank Act’s 10-30% range for sanctions exceeding $1 million. The payment was funded entirely by monetary penalties from securities law violators, with no funds taken from harmed investors, bringing the program’s total payouts since 2012 to $1.1 billion across 214 recipients.
The Securities and Exchange Commission awarded approximately $36 million to a whistleblower whose original, timely, and credible information significantly advanced both an SEC enforcement action and a related investigation by another federal agency. The whistleblower provided crucial details on an illegal scheme, including the identification of key documents and witnesses, which propelled forward ongoing investigations and enhanced regulatory efforts. This award was made possible under the SEC’s whistleblower program, which permits payments of 10% to 30% of monetary sanctions collected when they exceed $1 million, and is funded exclusively by penalties paid by violators—not by harmed investors. Since issuing its first award in 2012, the SEC has distributed roughly $1.1 billion to 214 individuals through this program. The Dodd-Frank Act ensures the confidentiality of whistleblowers, and the SEC does not disclose any information that could reveal their identity. The agency emphasizes that whistleblowers can act as catalysts, either initiating investigations or accelerating those already underway. This case exemplifies how coordinated efforts between federal agencies and whistleblower disclosures can lead to substantial enforcement outcomes.
Exhibits & Attached Documents (1)
Extracted insights
- $1.10B $1.1 billion ≥$1B
- $36.00M $36 million $10M–$100M
- $1.00M $1 million $1M–$10M
- person emily pasquinelli
- person illegal scheme
- company investor protection fund
- agency monetary sanctions paid to sec by securities law violators
- agency sec enforcement action
- agency sec's office of the whistleblower
- agency Securities and Exchange Commission
- person whistleblower awards
- SEC announced award of approximately $36 million to whistleblower
- Whistleblower provided information on illegal scheme
- Whistleblower contributed to SEC enforcement action
- SEC awarded approximately $1.1 billion to 214 individuals since 2012
- Emily Pasquinelli is Acting Chief of SEC's Office of the Whistleblower
- 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
- Investor protection fund financed by monetary sanctions paid to SEC by securities law violators
The Securities and Exchange Commission today announced an award of approximately $36 million to a whistleblower whose information and assistance significantly contributed to the success of an SEC enforcement action as well as actions by another federal agency. The whistleblower provided crucial information on an illegal scheme to the SEC's and the other agency's staffs, which included multiple meetings and the identification of key documents and witnesses. Under the SEC's whistleblower program, individuals who provide critical information to other agencies may be eligible for a related action award if they are also eligible for an award in the underlying SEC action. "Today’s whistleblower brought valuable new information to the attention of the SEC and to another federal agency, greatly assisting ongoing investigations," said Emily Pasquinelli, Acting Chief of the SEC's Office of the Whistleblower. "Whistleblowers can act as a springboard for an investigation or, like here, they can propel forward an already existing investigation." The SEC has awarded approximately $1.1 billion to 214 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 approximately $36 million to a whistleblower whose information and assistance significantly contributed to the success of an SEC enforcement action as well as actions by another federal agency. The whistleblower provided crucial information on an illegal scheme to the SEC's and the other agency's staffs, which included multiple meetings and the identification of key documents and witnesses. Under the SEC's whistleblower program, individuals who provide critical information to other agencies may be eligible for a related action award if they are also eligible for an award in the underlying SEC action. "Today’s whistleblower brought valuable new information to the attention of the SEC and to another federal agency, greatly assisting ongoing investigations," said Emily Pasquinelli, Acting Chief of the SEC's Office of the Whistleblower. "Whistleblowers can act as a springboard for an investigation or, like here, they can propel forward an already existing investigation." The SEC has awarded approximately $1.1 billion to 214 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.