2021-05-17 SEC Press press_release 62 KB 2,287 chars

SEC Awards More Than $31 Million to Whistleblowers in Two Enforcement Actions

Release
2021-85
summary

The SEC awarded over $31 million to four whistleblowers for providing critical information that led to successful enforcement actions and investor recoveries.

paragraph

The Securities and Exchange Commission announced whistleblower awards totaling more than $31 million to four individuals for their contributions to enforcement investigations. Two claimants received nearly $27 million combined for their cooperation in an existing investigation, while the other two received approximately $3.75 million and $750,000 respectively. These payments were made from the Investor Protection Fund, which is financed by monetary sanctions from violators rather than harmed investors.

narrative

The Securities and Exchange Commission announced whistleblower awards to four individuals totaling more than $31 million for providing critical information that aided enforcement investigations. In the first order, two claimants were awarded almost $27 million for providing new information and assistance during an existing investigation, including multiple in-person meetings with staff. Their cooperation helped the Commission bring an enforcement action that resulted in the return of millions of dollars to harmed investors. In a second order, one whistleblower received approximately $3.75 million and another received $750,000 for independently providing information that assisted in an ongoing investigation. The larger award in the second case went to the individual whose information was deemed more important to the resolution of the overall case. These awards were made from the Investor Protection Fund, which is financed entirely through monetary sanctions paid by securities law violators, ensuring no money is taken from harmed investors. Since issuing its first award in 2012, the SEC has awarded approximately $873 million to 162 individuals under the program established by the Dodd-Frank Act.

Enriched metadata

Scheme
unclassified
Victim loss
$873,000,000
Classified unclassified. No EDGAR filing fingerprint (criminal/DOJ-side scheme). detection rule →
Parties
acting chief of the sec's office of the whistlebloweremily pasquinellisec to protect confidentiality of whistleblowersSecurities and Exchange Commissionwhistleblower awards
Keywords
secwhistleblowerinformationmillionwhistleblowerswhistleblower awardsawardsawardinvestigationenforcementawards millionmillion whistleblowerswhistleblowers enforcementenforcement actionsinformation assistance

Exhibits & Attached Documents (2)

Extracted insights

Dollar amounts 6
  • $873.00M $873 million $100M–$1B
  • $31.00M $31 million $10M–$100M
  • $27.00M $27 million $10M–$100M
  • $3.75M $3.75 million $1M–$10M
  • $1.00M $1 million $1M–$10M
  • $750K $750,000 $100K–$1M
Entities 5
  • agency acting chief of the sec's office of the whistleblower
  • person emily pasquinelli
  • agency sec to protect confidentiality of whistleblowers
  • agency Securities and Exchange Commission
  • person whistleblower awards
Triples 10
  • SEC awarded $27 million to two claimants
  • SEC awarded $3.75 million to one whistleblower
  • SEC awarded $750,000 to one whistleblower
  • SEC announced whistleblower awards to four individuals totaling more than $31 million
  • Two claimants provided new information and assistance during an existing investigation
  • SEC brought enforcement action resulting in return of millions of dollars to harmed investors
  • SEC awarded approximately $873 million to 162 individuals since 2012
  • Emily Pasquinelli is Acting Chief of the SEC's Office of the Whistleblower
  • Dodd-Frank Act requires SEC to protect confidentiality of whistleblowers
  • Whistleblower awards range from 10 percent to 30 percent of money collected when sanctions exceed $1 million
Text layers
Extracted body text (2,287c)
The Securities and Exchange Commission today announced whistleblower awards to four individuals totaling more than $31 million. In the first order, the SEC awarded almost $27 million to two claimants who provided SEC staff with new information and assistance during an existing investigation, including meeting with the staff in person on multiple days. Their information and cooperation helped the Commission bring the enforcement action, which resulted in the return of millions of dollars to harmed investors. In the second order, the SEC awarded one whistleblower an award of approximately $3.75 million and the other whistleblower an award of approximately $750,000. While both whistleblowers independently provided information that assisted SEC staff in an ongoing investigation, the whistleblower who received the larger award provided information and assistance that was more important to the resolution of the overall case. “Whistleblowers play a critical role in an investigation, whether at the outset or during the course of an investigation,” said Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower. “Today’s awards demonstrate that whistleblowers with specific, credible information who significantly contribute to the success of an existing investigation may be eligible for an award.” The SEC has awarded approximately $873 million to 162 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 percent to 30 percent 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.
OCR text (2,287c · html-text · 99% conf)
The Securities and Exchange Commission today announced whistleblower awards to four individuals totaling more than $31 million. In the first order, the SEC awarded almost $27 million to two claimants who provided SEC staff with new information and assistance during an existing investigation, including meeting with the staff in person on multiple days. Their information and cooperation helped the Commission bring the enforcement action, which resulted in the return of millions of dollars to harmed investors. In the second order, the SEC awarded one whistleblower an award of approximately $3.75 million and the other whistleblower an award of approximately $750,000. While both whistleblowers independently provided information that assisted SEC staff in an ongoing investigation, the whistleblower who received the larger award provided information and assistance that was more important to the resolution of the overall case. “Whistleblowers play a critical role in an investigation, whether at the outset or during the course of an investigation,” said Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower. “Today’s awards demonstrate that whistleblowers with specific, credible information who significantly contribute to the success of an existing investigation may be eligible for an award.” The SEC has awarded approximately $873 million to 162 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 percent to 30 percent 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.