1 The Commission also concludes that, if the monetary sanctions ordered in connection with
The SEC awarded a whistleblower approximately $2 million, representing a percentage of monetary sanctions in a covered enforcement action, after the claimant provided original, voluntary information that exposed ongoing securities fraud, participated in multiple interviews, and supplied critical documents leading to a successful investigation.
The SEC granted a whistleblower an award of approximately $2 million, representing a percentage of monetary sanctions collected or to be collected in a covered enforcement action, after determining the claimant provided original, voluntary information that directly led to the successful investigation of securities fraud. The claimant alerted the Commission to ongoing misconduct, participated in multiple voluntary interviews, and provided documents that saved significant staff resources. The Commission also consolidated related actions under Rule 21F-4(d)(2) due to their shared factual nucleus, though the identity of the wrongdoer and exact sanction amount remain redacted.
The SEC awarded a whistleblower approximately $2 million, representing a percentage of monetary sanctions collected or to be collected in a covered enforcement action, after concluding the claimant provided original, voluntary information that triggered and substantially advanced the investigation into securities fraud. The whistleblower played a pivotal role by alerting the Commission to ongoing misconduct, participating in multiple voluntary interviews, and supplying critical documents that saved significant investigative time and resources. The Commission adopted the Claims Review Staff’s recommendation and formally granted the award under Rule 21F-3(a), recognizing the claimant’s substantial contribution to the enforcement outcome. Additionally, the Commission determined that related actions should be treated as part of the same covered action under Rule 21F-4(d)(2) because they arose from the same nucleus of operative facts. Although the specific nature of the fraud, the identity of the wrongdoer, and the exact percentage of the award are redacted, the total sanctions were sufficient to justify the $2 million payout. The order focuses solely on the whistleblower’s eligibility and award amount, with no disclosure of penalties imposed on the alleged violators. This case underscores the SEC’s commitment to incentivizing insiders to report fraud through meaningful financial rewards.
Extracted insights
- $2.00M $2 million $1M–$10M
- person claims review staff
- agency documents and additional information to sec staff
- agency multiple voluntary interviews with sec staff
- agency original information to the sec
- agency sec to on-going fraud
- agency Securities and Exchange Commission
- person whistleblower award proceeding order
- Claimant receive whistleblower award of approximately $2 million
- Claimant provided original information to the SEC
- SEC issued Whistleblower Award Proceeding Order
- Claims Review Staff recommended whistleblower award of approximately $2 million
- Claimant alerted SEC to on-going fraud
- Claimant participated in multiple voluntary interviews with SEC staff
- Claimant provided documents and additional information to SEC staff
- SEC opened investigation into alleged conduct
- Vanessa A. Countryman signed as Secretary
UNITED STATES OF AMERICA before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 92587 / August 6, 2021 WHISTLEBLOWER AWARD PROCEEDING File No. 2021-78 In the Matter of the Claim for an Award in connection with Notice of Covered Action ORDER DETERMINING WHISTLEBLOWER AWARD CLAIM The Claims Review Staff (“CRS”) issued a Preliminary Determination recommending that (“Claimant”) receive a whistleblower award of approximately $2 million, which represents percent ( %) of the monetary sanctions collected, or to be collected, in the above-referenced Covered Action (the “Covered Action”). 1 The recommendation of the CRS is adopted. The record demonstrates that Claimant voluntarily provided original information to the Commission that led to the successful enforcement of the Covered Action. 2 In reaching this determination, the Commission considered that Claimant alerted the Commission to the on-going fraud prompting the opening of an investigation into the alleged conduct, participated in multiple voluntary interviews with Commission staff, and provided documents and additional information that assisted the staff in its investigation, saving Commission staff time and resources. Accordingly, it is hereby ORDERED that Claimant shall receive an award of percent ( %) of the monetary sanctions collected or to be collected in the Covered Action. By the Commission. Vanessa A. Countryman Secretary
UNITED STATES OF AMERICA before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 92587 / August 6, 2021 WHISTLEBLOWER AWARD PROCEEDING File No. 2021-78 In the Matter of the Claim for an Award in connection with Notice of Covered Action ORDER DETERMINING WHISTLEBLOWER AWARD CLAIM The Claims Review Staff (“CRS”) issued a Preliminary Determination recommending that (“Claimant”) receive a whistleblower award of approximately $2 million, which represents percent ( %) of the monetary sanctions collected, or to be collected, in the above-referenced Covered Action (the “Covered Action”). 1 The recommendation of the CRS is adopted. The record demonstrates that Claimant voluntarily provided original information to the Commission that led to the successful enforcement of the Covered Action. 2 In reaching this determination, the Commission considered that Claimant alerted the Commission to the on-going fraud prompting the opening of an investigation into the alleged conduct, participated in multiple voluntary interviews with Commission staff, and provided documents and additional information that assisted the staff in its investigation, saving Commission staff time and resources. Accordingly, it is hereby ORDERED that Claimant shall receive an award of percent ( %) of the monetary sanctions collected or to be collected in the Covered Action. By the Commission. Vanessa A. Countryman Secretary