In the Matter of the Claim for an Award
Two whistleblowers, Claimant 1 and Claimant 2, each received an equal share of over $500,000 in SEC whistleblower awards for providing original information that exposed an ongoing fraud, triggering swift investigations and leading to successful enforcement actions in a primary case and a related action with coordinated sanctions.
The SEC awarded Claimant 1 and Claimant 2 equal shares of an aggregate whistleblower award exceeding $500,000 for providing original, voluntary information that led to the successful enforcement of a Covered Action and a Related Action arising from the same fraudulent conduct. Both claimants assisted the SEC and another government agency by triggering swift investigations, focusing the inquiry, and conserving significant resources, with their tips forming the foundational basis for both actions. Monetary sanctions in the Related Action were deemed satisfied by payments in the Covered Action, and no double-counting occurred under SEC rules, with awards calculated only on uniquely collected funds.
The U.S. Securities and Exchange Commission (SEC) awarded Claimant 1 and Claimant 2 equal shares of a combined whistleblower payout exceeding $500,000 for providing original information that exposed an ongoing fraud and led to successful enforcement actions in both a primary Covered Action and a Related Action. Both whistleblowers voluntarily disclosed their information to the SEC and another government agency, which prompted immediate investigations and formed the core evidence for the enforcement proceedings. Their sustained cooperation significantly narrowed the scope of the inquiry, saved agency resources, and demonstrated substantial law enforcement value due to the nature of the fraud. The Related Action’s monetary sanctions were deemed satisfied by payments made in the Covered Action, and SEC rules prohibited double-counting of funds collected across both proceedings. The Claims Review Staff recommended equal awards based on the comparable contributions of both claimants, a recommendation the SEC formally adopted after the claimants declined to contest the preliminary determinations. The award percentages, though redacted, were applied to sanctions collected in both actions, including any future collections post-order. No defendant or specific fraud details are disclosed due to redactions, but the outcome confirms a coordinated, multi-agency enforcement success driven by whistleblower disclosures.
Extracted insights
- $500K $500,000 $100K–$1M
- person claims review staff
- person related action
- agency sec and other agency
- agency Securities and Exchange Commission
- person whistleblower award
- Claimant 1 receive whistleblower award percent of monetary sanctions in Covered Action
- Claimant 2 receive whistleblower award percent of monetary sanctions in Covered Action
- Claimants provided original information to SEC and Other Agency
- Claimant 1 and Claimant 2 led to successful enforcement of Covered Action and Related Action
- Whistleblower Award aggregate amount over $500,000
- Related Action resulted in monetary sanctions more than $1,000,000
- SEC issued Order Determining Whistleblower Award Claims
- Claims Review Staff issued Preliminary Determinations recommending whistleblower awards to Claimants
UNITED STATES OF AMERICA before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 91225 / March 1, 2021 WHISTLEBLOWER AWARD PROCEEDING File No. 2021-31 In the Matter of the Claim for an 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”) and (“Claimant 2”) (collectively “Claimants”) each receive a whistleblower award in the amount of percent ( %) of the monetary sanctions collected and to be collected in (collectively, the “Covered Action”) 1 and in a related action, (the “Related Action”), 2 which will presently result in an aggregate award of over $500,000. 3 Claimants provided written notice of their decisions not to contest the Preliminary Determinations. The recommendation of the CRS is adopted. The record demonstrates that Claimant 1 and Claimant 2 each voluntarily provided original information to the Commission and to the (the “Other Agency”), and that each Claimant’s original information led to the successful enforcement of both the Covered Action and the Related Action. 4 2 --- page 3 --- In reaching this determination, we considered that (1) the Claimants’ tips both caused the swift opening of the Commission’s and the Other Agency’s investigations and were the underlying source that formed the basis for the Covered Action and Related Action; (2) both Claimants provided substantial, ongoing assistance that focused the investigation and conserved significant Commission and Other Agency time and resources; and (3) there was substantial law enforcement interest in the information provided, as it related to detecting an ongoing fraud involving . Further, we find that an equal split of the award is appropriate based on similar contributions Claimant 1 and Claimant 2 made to the Covered Action and the Related Action. Accordingly, it is hereby ORDERED that Claimant 1 and Claimant 2 shall each receive an award of percent ( percent) of the monetary sanctions collected in the Covered Action, and percent ( percent) of the monetary sanctions collected in the Related Action, as well as any monetary sanctions collected in either action after the date of this Order. By the Commission. Vanessa A. Countryman Secretary
UNITED STATES OF AMERICA before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 91225 / March 1, 2021 WHISTLEBLOWER AWARD PROCEEDING File No. 2021-31 In the Matter of the Claim for an 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”) and (“Claimant 2”) (collectively “Claimants”) each receive a whistleblower award in the amount of percent ( %) of the monetary sanctions collected and to be collected in (collectively, the “Covered Action”) 1 and in a related action, (the “Related Action”), 2 which will presently result in an aggregate award of over $500,000. 3 Claimants provided written notice of their decisions not to contest the Preliminary Determinations. The recommendation of the CRS is adopted. The record demonstrates that Claimant 1 and Claimant 2 each voluntarily provided original information to the Commission and to the (the “Other Agency”), and that each Claimant’s original information led to the successful enforcement of both the Covered Action and the Related Action. 4 2 --- page 3 --- In reaching this determination, we considered that (1) the Claimants’ tips both caused the swift opening of the Commission’s and the Other Agency’s investigations and were the underlying source that formed the basis for the Covered Action and Related Action; (2) both Claimants provided substantial, ongoing assistance that focused the investigation and conserved significant Commission and Other Agency time and resources; and (3) there was substantial law enforcement interest in the information provided, as it related to detecting an ongoing fraud involving . Further, we find that an equal split of the award is appropriate based on similar contributions Claimant 1 and Claimant 2 made to the Covered Action and the Related Action. Accordingly, it is hereby ORDERED that Claimant 1 and Claimant 2 shall each receive an award of percent ( percent) of the monetary sanctions collected in the Covered Action, and percent ( percent) of the monetary sanctions collected in the Related Action, as well as any monetary sanctions collected in either action after the date of this Order. By the Commission. Vanessa A. Countryman Secretary