SEC Awards Over $500,000 to Whistleblower Under "Safe Harbor" for Internal Reporting and Surpasses Record for Individual Awards
SEC awarded $500,000 to whistleblower who exposed fraud, leading to its shutdown and triggering safe harbor protections.
The SEC awarded over $500,000 to a whistleblower who reported a fraudulent scheme internally and then to the SEC within 120 days, triggering the 'safe harbor' provision. The whistleblower's information led to an internal investigation, which was then reported to an outside agency and ultimately to the SEC, enabling the swift shutdown of the fraud. The award is part of a record 40 individual awards in the fiscal year, with nearly $200 million awarded in the first half of FY21 alone.
The Securities and Exchange Commission awarded over $500,000 to a whistleblower who raised concerns internally before submitting a tip to the SEC within 120 days, triggering the 'safe harbor' provision of the SEC's whistleblower rules. The whistleblower's information prompted an internal investigation by the company, which then reported to an outside agency, which in turn provided the information to the SEC, leading to the swift shutdown of an ongoing fraudulent scheme. This award is part of a record 40 individual awards in the fiscal year, with nearly $200 million awarded in the first half of FY21 alone, and the total awarded to whistleblowers since 2012 now exceeds $760 million. The funds are sourced entirely from an investor protection fund established by Congress, financed through monetary sanctions paid to the SEC by securities law violators, and no money is taken from harmed investors. 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, with awards ranging from 10-30% of the money collected when the monetary sanctions exceed $1 million.
Exhibits & Attached Documents (1)
Extracted insights
- $760.00M $760 million $100M–$1B
- $200.00M $200 million $100M–$1B
- $1.00M $1 million $1M–$10M
- $500K $500,000 $100K–$1M
- agency chief of the sec's office of the whistleblower
- company company
- company investor protection fund
- person jane norberg
- agency monetary sanctions paid to the sec by securities law violators
- person outside agency
- agency Securities and Exchange Commission
- person whistleblower awards
- SEC awarded more than $500,000 to a whistleblower
- Whistleblower raised concerns internally before submitting tip to the Commission
- Whistleblower's information and assistance allowed the Commission and another agency to quickly file actions
- Company reported to outside agency
- Whistleblower reported to SEC within 120 days of reporting violations internally
- SEC awarded 40 individuals this fiscal year
- Jane Norberg is Chief of the SEC's Office of the Whistleblower
- SEC awarded whistleblowers nearly $200 million in the first half of FY21
- SEC awarded approximately $760 million to 145 individuals since 2012
- Investor protection fund established by Congress
- Investor protection fund financed by monetary sanctions paid to the SEC by securities law violators
- Whistleblower awards can range from 10-30% of money collected when sanctions exceed $1 million
The Securities and Exchange Commission awarded more than $500,000 to a whistleblower who raised concerns internally before submitting a tip to the Commission. The whistleblower's information and assistance allowed the Commission and another agency to quickly file actions, shutting down an ongoing fraudulent scheme. The whistleblower's information prompted an internal investigation by the company, which then reported to an outside agency, which in turn provided the information to the SEC. Separately, the whistleblower also reported to the SEC within 120 days of reporting the violations internally to the company. Under the "safe harbor" provision of the SEC's whistleblower rules, the SEC treats the whistleblower's information as though it had been submitted to the SEC at the same time it was internally reported as long as the whistleblower also reports the information to the SEC within 120 days of the internal report. "With this award, the Commission has awarded 40 individuals this fiscal year, surpassing last year's record of 39 individual awards," said Jane Norberg, Chief of the SEC's Office of the Whistleblower. "The Commission has awarded whistleblowers nearly $200 million in the first half of FY21 alone." The SEC has now awarded approximately $760 million to 145 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 10-30% of the money collected when the monetary sanctions exceed $1 million. For more information about the whistleblower program and how to submit a tip, visit www.sec.gov/whistleblower.
The Securities and Exchange Commission awarded more than $500,000 to a whistleblower who raised concerns internally before submitting a tip to the Commission. The whistleblower's information and assistance allowed the Commission and another agency to quickly file actions, shutting down an ongoing fraudulent scheme. The whistleblower's information prompted an internal investigation by the company, which then reported to an outside agency, which in turn provided the information to the SEC. Separately, the whistleblower also reported to the SEC within 120 days of reporting the violations internally to the company. Under the "safe harbor" provision of the SEC's whistleblower rules, the SEC treats the whistleblower's information as though it had been submitted to the SEC at the same time it was internally reported as long as the whistleblower also reports the information to the SEC within 120 days of the internal report. "With this award, the Commission has awarded 40 individuals this fiscal year, surpassing last year's record of 39 individual awards," said Jane Norberg, Chief of the SEC's Office of the Whistleblower. "The Commission has awarded whistleblowers nearly $200 million in the first half of FY21 alone." The SEC has now awarded approximately $760 million to 145 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 10-30% of the money collected when the monetary sanctions exceed $1 million. For more information about the whistleblower program and how to submit a tip, visit www.sec.gov/whistleblower.