In the Matter of the Claim for Award
Two whistleblowers received combined awards of $1.5 million from the SEC for providing original information that led to a successful enforcement action, with Claimant 1 receiving 30% (~$1M) for a roadmap and ongoing cooperation, and Claimant 2 receiving 15% (~$500K) for auxiliary assistance, while a third claimant’s request was denied.
The SEC awarded Claimant 1 approximately $1 million (30% of monetary sanctions) and Claimant 2 approximately $500,000 (15% of monetary sanctions) for providing original information that enabled a successful enforcement action. Claimant 1’s contributions included providing a roadmap for the investigation and ongoing cooperation, while Claimant 2’s role was less central, involving narrowing the investigation’s focus and assisting with subpoena drafting. Both claimants voluntarily submitted information, accepted the preliminary award determinations without contest, and their actions met the criteria under Rule 21F-6 of the Securities Exchange Act of 1934.
The SEC awarded two whistleblowers a total of approximately $1.5 million for providing original information that directly led to a successful enforcement action, though the specific entity and nature of the fraud remain redacted. Claimant 1 received a 30% award (~$1 million) for serving as the primary source of investigative direction by providing a roadmap and offering continuous assistance throughout the investigation. Claimant 2 received a 15% award (~$500,000) for valuable but secondary contributions, including helping to narrow the investigation’s scope and aiding in the drafting of subpoenas. Both claimants voluntarily submitted their information to the Commission and did not contest the Preliminary Determinations, affirming the legitimacy and impact of their disclosures. A third claimant’s request for an award was denied, as their information did not meet the threshold for eligibility under Rule 21F-6. The Commission determined the award percentages based on the significance, originality, and impact of each claimant’s contributions, as required by the Securities Exchange Act. While the total monetary sanctions collected in the covered action were not disclosed, the combined awards reflect a substantial enforcement outcome and underscore the SEC’s commitment to incentivizing whistleblowers.
Extracted insights
- $1.00M $1,000,000 $1M–$10M
- $500K $500,000 $100K–$1M
- person covered action
- agency sec enforcement staff
- agency Securities and Exchange Commission
- person staff investigation
- Claimant 1 receive whistleblower award approximately $1,000,000 of monetary sanctions
- Claimant 2 receive whistleblower award approximately $500,000 of monetary sanctions
- Claimant 1 provided information to SEC Enforcement staff
- Claimant 1 served as roadmap for staff investigation
- Claimant 1 provided ongoing assistance to SEC Enforcement staff
- Claimant 2 provided independent analysis to SEC Enforcement staff
- Claimant 2 assisted with crafting subpoena
- Claimants led to successful enforcement of Covered Action
- SEC issued order on August 6, 2021
- Vanessa A. Countryman signed as Secretary
UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 92589 / August 6, 2021 WHISTLEBLOWER AWARD PROCEEDING File No. 2021-79 In the Matter of the Claim for Award in connection with Notice of Covered Action ORDER DETERMINING WHISTLEBLOWER AWARD CLAIMS The Claims Review Staff (“CRS”) issued Preliminary Determinations recommending that (“Claimant 1”) receive a whistleblower award equal to percent ( %), or approximately $1,000,000, of the monetary sanctions collected, or to be collected, in the abovereferenced Covered Action; and that (“Claimant 2,” and collectively with Claimant 1, the “Claimants”) receive a whistleblower award equal to percent ( %), or approximately $500,000, of the monetary sanctions collected, or to be collected, in the abovereferenced Covered Action. Claimants each provided written notice of their decisions not to contest the Preliminary Determinations. 1 The recommendation of the CRS is adopted. The record demonstrates that Claimants each voluntarily provided original information to the Commission, and that this information led 1 A third claimant (“Claimant 3”) did not contest the Preliminary Determination denying Claimant 3’s claim. Accordingly, the Preliminary Determination with respect to Claimant 3’s award claim became the Final Order of the Commission through operation of Exchange Act Rule 21F-10(f), 17 C.F.R. § 240.21F-10(f). Applying the award criteria as specified in Rule 21F-6 of the Exchange Act based on the specific facts and circumstances here, we find that an award of % for Claimant 1 and % for Claimant 2 is appropriate. In reaching that determination, we assessed the following facts: (1) Claimant 1 provided Enforcement staff with information that served as a roadmap for the staff’s investigation; (2) Claimant 1 provided ongoing assistance to the staff as the investigation progressed; (3) while Claimant 2’s independent analysis was helpful to the staff by narrowing the investigation’s focus and by assisting with the crafting of a subpoena, it was less impactful as compared to Claimant 1’s information; and (4) Claimant 2’s observations and insights assisted the staff and informed the final charges brought by the Commission. Accordingly, it is hereby ORDERED that (1) Claimant 1 shall receive an award equal to percent ( %) of the monetary sanctions collected, or to be collected, in the Covered Action, and (2) Claimant 2 shall receive an award equal to 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. 92589 / August 6, 2021 WHISTLEBLOWER AWARD PROCEEDING File No. 2021-79 In the Matter of the Claim for Award in connection with Notice of Covered Action ORDER DETERMINING WHISTLEBLOWER AWARD CLAIMS The Claims Review Staff (“CRS”) issued Preliminary Determinations recommending that (“Claimant 1”) receive a whistleblower award equal to percent ( %), or approximately $1,000,000, of the monetary sanctions collected, or to be collected, in the abovereferenced Covered Action; and that (“Claimant 2,” and collectively with Claimant 1, the “Claimants”) receive a whistleblower award equal to percent ( %), or approximately $500,000, of the monetary sanctions collected, or to be collected, in the abovereferenced Covered Action. Claimants each provided written notice of their decisions not to contest the Preliminary Determinations. 1 The recommendation of the CRS is adopted. The record demonstrates that Claimants each voluntarily provided original information to the Commission, and that this information led 1 A third claimant (“Claimant 3”) did not contest the Preliminary Determination denying Claimant 3’s claim. Accordingly, the Preliminary Determination with respect to Claimant 3’s award claim became the Final Order of the Commission through operation of Exchange Act Rule 21F-10(f), 17 C.F.R. § 240.21F-10(f). Applying the award criteria as specified in Rule 21F-6 of the Exchange Act based on the specific facts and circumstances here, we find that an award of % for Claimant 1 and % for Claimant 2 is appropriate. In reaching that determination, we assessed the following facts: (1) Claimant 1 provided Enforcement staff with information that served as a roadmap for the staff’s investigation; (2) Claimant 1 provided ongoing assistance to the staff as the investigation progressed; (3) while Claimant 2’s independent analysis was helpful to the staff by narrowing the investigation’s focus and by assisting with the crafting of a subpoena, it was less impactful as compared to Claimant 1’s information; and (4) Claimant 2’s observations and insights assisted the staff and informed the final charges brought by the Commission. Accordingly, it is hereby ORDERED that (1) Claimant 1 shall receive an award equal to percent ( %) of the monetary sanctions collected, or to be collected, in the Covered Action, and (2) Claimant 2 shall receive an award equal to percent ( %) of the monetary sanctions collected, or to be collected, in the Covered Action. By the Commission. Vanessa A. Countryman Secretary