SEC Awards Approximately $3.6 Million to Whistleblower
The SEC awarded a whistleblower $3.6 million for providing original, timely information that led to an enforcement action against securities‑law violators, with the award funded by sanctions collected.
The SEC announced a $3.6 million whistleblower award after the tip triggered a new investigation into securities‑law violations. The information was original, timely and credible, and the whistleblower continued to assist as the Commission pursued the case, which resulted in monetary sanctions exceeding $1 million. The award, representing 10‑30 % of the sanctions, comes from the investor‑protection fund and no money was taken from harmed investors.
The U.S. Securities and Exchange Commission disclosed that it has paid a whistleblower approximately $3.6 million for information that sparked a fresh investigation into securities‑law violations. The whistleblower’s tip was deemed original, timely and credible, and the individual continued to cooperate with SEC staff throughout the ensuing enforcement action. The investigation culminated in monetary sanctions against the violators that exceeded $1 million, the proceeds of which fund the investor‑protection fund used for the award. Under the Dodd‑Frank Act, whistleblower awards may range from 10 % to 30 % of collected sanctions, and the $3.6 million payment falls within that range. Since the program’s inception in 2012, the SEC has distributed about $842 million to 157 whistleblowers, all paid from sanctions rather than from harmed investors. The whistleblower’s identity remains confidential, and the award reflects the SEC’s commitment to encouraging insider reporting of potential securities fraud.
Exhibits & Attached Documents (1)
Extracted insights
- $842.00M $842 million $100M–$1B
- $3.60M $3.6 million $1M–$10M
- $1.00M $1 million $1M–$10M
- agency acting chief of sec's office of the whistleblower
- person emily pasquinelli
- company investor protection fund
- agency monetary sanctions paid to sec by securities law violators
- agency Securities and Exchange Commission
- agency successful sec enforcement action
- person whistleblower awards
- SEC announced award of approximately $3.6 million to whistleblower
- Whistleblower provided information leading to successful SEC enforcement action
- Emily Pasquinelli is Acting Chief of SEC's Office of the Whistleblower
- SEC awarded approximately $842 million to 157 individuals since 2012
- Whistleblower awards range from 10 percent to 30 percent 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 $3.6 million to a whistleblower whose information and assistance led to a successful SEC enforcement action. “The whistleblower brought valuable information to the attention of the SEC, causing it to open a new investigation into wrongdoing,” said Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower. “The whistleblower further assisted the SEC by providing ongoing assistance as the Commission’s investigation progressed. This award shows the significant help a whistleblower can provide by sharing information of potential violations of the federal securities laws with the Commission.” The SEC has awarded approximately $842 million to 157 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.
The Securities and Exchange Commission today announced an award of approximately $3.6 million to a whistleblower whose information and assistance led to a successful SEC enforcement action. “The whistleblower brought valuable information to the attention of the SEC, causing it to open a new investigation into wrongdoing,” said Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower. “The whistleblower further assisted the SEC by providing ongoing assistance as the Commission’s investigation progressed. This award shows the significant help a whistleblower can provide by sharing information of potential violations of the federal securities laws with the Commission.” The SEC has awarded approximately $842 million to 157 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.