In the Matter of the Claim for an Award in connection with
A whistleblower received over $1 million from the SEC for providing original, voluntary information that triggered an investigation into undisclosed misconduct by a regulated entity, leading to a covered enforcement action with related administrative proceedings, after offering critical insider insights and ongoing cooperation that saved agency resources and amid documented personal hardships.
The SEC awarded a whistleblower more than $1 million, representing a percentage of monetary sanctions collected in a covered enforcement action under Section 21F of the Securities Exchange Act of 1934. The whistleblower’s original information caused the SEC to open its investigation, formed the basis of the charges, and included non-public insights that helped identify key players and conserve staff resources through two interviews and ongoing assistance. Administrative actions arising from the same factual nucleus were included in the covered action, and the Commission cited substantial law enforcement interest and the whistleblower’s personal and professional hardships as factors supporting the award.
The SEC awarded a whistleblower over $1 million for providing original, voluntary information that directly triggered its investigation into undisclosed misconduct by a regulated entity, forming the foundational basis for the charges in the covered enforcement action. The whistleblower’s tips included critical, non-public insights not otherwise accessible to the Commission, and they provided ongoing cooperation through two interviews and identifying key participants, significantly conserving agency time and resources. The Commission determined that related administrative actions, arising from the same nucleus of operative facts, should be treated as part of the covered action under Rule 21F-4(d)(1). The award was justified by the substantial law enforcement interest in the information and the whistleblower’s documented personal and professional hardships. No reduction was applied for delay or misconduct, and the exact percentage of sanctions awarded and the nature of the underlying violations remain redacted. The award was made under Section 21F of the Securities Exchange Act of 1934, affirming the SEC’s commitment to incentivizing credible, impactful whistleblowing. The decision was formally adopted by the Commission following the Claims Review Staff’s preliminary recommendation.
Extracted insights
- agency opening of the sec investigation
- agency original information to the sec
- agency Securities and Exchange Commission
- agency two interviews with sec staff
- Claimant provided original information to the SEC
- Claimant's original information led to successful enforcement of the Covered Action
- Claimant receive whistleblower award of more than $1 million
- Claimant's tip caused opening of the SEC investigation
- Claimant participated in two interviews with SEC staff
- Claimant suffered personal and professional hardships
- SEC issued Preliminary Determination on June 24, 2021
- Vanessa A. Countryman signed as Secretary
UNITED STATES OF AMERICA before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 92247 / Ju ne 24, 2021 WHISTLEBLOWER AWARD PROCEEDING File No. 2021-64 In the Matter of the Claim for an Award in connection with Notice of Covered Action Redacted Redacted Redacted Redacted ORDER DETERMINING WHISTLEBLOWER AWARD CLAIM The recommendation of the CRS is adopted. The record demonstrates that Claimant voluntarily provided original information to the Commission, and that Claimant’s original information led to the successful enforcement of the Covered Action. 2 The Claims Review Staff (“CRS”) issued a P reliminary Determination recommending that (“Claimant”) receive a whistleblower award of more than $1 millio n, which represents percent ( %) of the monetary sanctions collected, or to be collected, in the above-referenced Covered Action (the “Covered Action”). 1 Redacted Redacted *** 1 For purposes of making an award, we determined to treat the administrative actions ag ain st as part of the Covered Action, given thatthe actions arose from the same nucleus of operative facts. See Securities Exchange A ct o f 1934 Ru le 21F-4(d)(1), 17 C.F.R. § 240.21F-4(d)(1). Redacted Redacted Redacted 2 See Securities Exchange Act of 1934 (“Exchange Act”) Section 21-F(b )(1), 15 U.S.C. § 78u-6(b)(1); Exchange A ct Ru le 21F-3(a), 17 C.F.R. § 240.21F-3(a). 1 In reaching this determination, the Commission considered that (i) Claimant’s tip caused the opening of the Commission’s investigation and was the underlying source that formed Redacted Redacted the basis for the charges in the Covered Action; (ii) Claimant provided ongoing assistance to Commission staff, including by participating in two interviews with Commission staff, helping staff to understand the key players in the investigation, and providing information that was not otherwise accessible to staff, which conserved significant staff time and resources; ( iii) the r e w a s substantial law enforcement interest in the information; and (iv) Claimant suffered personal and professional hardships. Accordingly, percent ( *** it is hereby ORDERED that Claimant shall receive an award of %) of the monetary sanctions collected, or to be collected, in the Covered Action. Redacted By the Commission. Vanessa A. Countryman Secretary Redacted Redacted Redacted 2
UNITED STATES OF AMERICA before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 92247 / June 24, 2021 WHISTLEBLOWER AWARD PROCEEDING File No. 2021-64 In the Matter of the Claim for an Award in connection with Notice of Covered Action Redacted Redacted Redacted Redacted ORDER DETERMINING WHISTLEBLOWER AWARD CLAIM The recommendation of the CRS is adopted. The record demonstrates that Claimant voluntarily provided original information to the Commission, and that Claimant’s original information led to the successful enforcement of the Covered Action.2 The Claims Review Staff (“CRS”) issued a Preliminary Determination recommending that (“Claimant”) receive a whistleblower award of more than $1 million, which represents percent ( %) of the monetary sanctions collected, or to be collected, in the above-referenced Covered Action (the “Covered Action”).1 Redacted Redacted *** 1 For purposes of making an award, we determined to treat the administrative actions against as part of the Covered Action, given that the actions arose from the same nucleus of operative facts. See Securities Exchange Act of 1934 Rule 21F-4(d)(1), 17 C.F.R. § 240.21F-4(d)(1). Redacted Redacted Redacted 2 See Securities Exchange Act of 1934 (“Exchange Act”) Section 21-F(b)(1), 15 U.S.C. § 78u-6(b)(1); Exchange Act Rule 21F-3(a), 17 C.F.R. § 240.21F-3(a). 1 In reaching this determination, the Commission considered that (i) Claimant’s tip caused the opening of the Commission’s investigation and was the underlying source that formed Redacted Redacted the basis for the charges in the Covered Action; (ii) Claimant provided ongoing assistance to Commission staff, including by participating in two interviews with Commission staff, helping staff to understand the key players in the investigation, and providing information that was not otherwise accessible to staff, which conserved significant staff time and resources; (iii) there was substantial law enforcement interest in the information; and (iv) Claimant suffered personal and professional hardships. Accordingly, percent ( *** it is hereby ORDERED that Claimant shall receive an award of %) of the monetary sanctions collected, or to be collected, in the Covered Action. Redacted By the Commission. Vanessa A. Countryman Secretary Redacted Redacted Redacted 2