In the Matter of the Claims for Awards
A whistleblower received over $9.2 million for providing original, significant information that exposed an ongoing fraud leading to a DOJ settlement with a company, enabling investor fund recovery and triggering a whistleblower award under updated rules that recognized DOJ settlement agreements as eligible 'related actions'.
The SEC awarded a whistleblower more than $9.2 million, representing a percentage of monetary sanctions collected in related enforcement actions, including a Department of Justice settlement agreement (PA) with a company involved in securities fraud. The whistleblower provided original information that directly led to the charges, voluntarily traveled at personal expense to assist DOJ interviews, and enabled substantial recovery of funds for harmed investors. The award was justified under Rule 21F-6 due to the significance of the information, the extent of cooperation, and the strong law enforcement interest in deterring fraud, with the DOJ PA qualifying as a 'related action' under 2020 rule amendments.
A whistleblower was awarded more than $9.2 million by the SEC for providing original, significant information that exposed an ongoing fraud and directly led to a successful Department of Justice enforcement action against a company, resulting in a settlement agreement (PA). The whistleblower’s tips were critical in enabling the recovery of substantial funds for investors harmed by the fraud and included voluntary, self-funded travel to assist DOJ interviews, demonstrating exceptional cooperation. Under the SEC’s updated whistleblower rules effective December 7, 2020, DOJ settlement agreements entered after July 21, 2010, qualify as eligible 'related actions' for award purposes, and this PA met those criteria. The whistleblower had previously received an award for a related SEC action and timely filed claims for the DOJ settlement without contesting the preliminary determination. The SEC determined the award amount was appropriate under Rule 21F-6, positively assessing the significance of the information, the assistance rendered, and the deterrent effect on future fraud. No negative factors—such as culpability, unreasonable delay, or interference with internal compliance—were found to reduce the award. This case underscores the SEC’s commitment to incentivizing insiders to report fraud through substantial financial rewards tied to enforcement outcomes.
Extracted insights
- $9.20M $9.2 million $1M–$10M
- company a company
- person covered action
- agency Department of Justice
- person ongoing fraud
- person related actions
- agency Securities and Exchange Commission
- person whistleblower rules amendments
- Claimant receive whistleblower award more than $9.2 million
- Claimant provided original information to SEC
- SEC provided information to United States Department of Justice
- Claimant's information led to successful enforcement of Related Actions
- Claimant provided significant information about ongoing fraud
- Claimant's information enabled return of money to investors harmed by fraud
- DOJ entered into Prosecutorial Agreement with a company
- Whistleblower Rules amendments became effective December 7, 2020
- Claimant previously received whistleblower award in connection with Covered Action
- Vanessa A. Countryman signed as Secretary
UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 91183 / February 23, 2021 WHISTLEBLOWER AWARD PROCEEDING File No. 2021-28 In the Matter of the Claims for Awards in connection with ORDER DETERMINING WHISTLEBLOWER AWARD CLAIMS The Claims Review Staff (“CRS”) issued Preliminary Determinations recommending that (“Claimant”) receive whistleblower awards in the amount of more than $9.2 million, equal to percent ( %) of the monetary sanctions collected in the abovereferenced related actions (“Related Actions”). Claimant previously received a whistleblower award in connection with Covered Action decision not to contest the Preliminary Determinations for the Related Actions. The recommendation of the CRS for the Related Actions is adopted. The record demonstrates that Claimant voluntarily provided original information to the Commission, that the Commission provided the information to the United States Department of Justice (“DOJ”), and that the information led to the successful enforcement of the Related Actions. 2 One of the Related Actions for which Claimant is receiving an award is a Agreement (“ PA”) between DOJ and a company. The recent amendments to the Whistleblower Rules, which became effective December 7, 2020, deem a DOJ PA entered into after July 21, 2010 to be an administrative action that may be a “related action” that is eligible for a whistleblower award, and Claimant satisfies the requirements for such an award. 3 Applying the award criteria in Rule 21F-6 of the Securities Exchange Act of 1934 to the specific facts and circumstances here, we find the proposed award amount is appropriate. 4 In reaching that determination, we positively assessed the following facts: (1) Claimant provided significant information about an ongoing fraud that led to DOJ’s charges (2) Claimant’s information enabled a large amount of money to be returned to investors harmed by the fraud; and (3) Claimant provided significant assistance by traveling at Claimant’s own expense to be interviewed by DOJ. Accordingly, it is hereby ORDERED that Claimant shall receive an award of more than $9.2 million, or percent (%) of the monetary sanctions collected or to be collected in the Related Actions. By the Commission. Vanessa A. Countryman Secretary
UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 91183 / February 23, 2021 WHISTLEBLOWER AWARD PROCEEDING File No. 2021-28 In the Matter of the Claims for Awards in connection with ORDER DETERMINING WHISTLEBLOWER AWARD CLAIMS The Claims Review Staff (“CRS”) issued Preliminary Determinations recommending that (“Claimant”) receive whistleblower awards in the amount of more than $9.2 million, equal to percent ( %) of the monetary sanctions collected in the abovereferenced related actions (“Related Actions”). Claimant previously received a whistleblower award in connection with Covered Action decision not to contest the Preliminary Determinations for the Related Actions. The recommendation of the CRS for the Related Actions is adopted. The record demonstrates that Claimant voluntarily provided original information to the Commission, that the Commission provided the information to the United States Department of Justice (“DOJ”), and that the information led to the successful enforcement of the Related Actions. 2 One of the Related Actions for which Claimant is receiving an award is a Agreement (“ PA”) between DOJ and a company. The recent amendments to the Whistleblower Rules, which became effective December 7, 2020, deem a DOJ PA entered into after July 21, 2010 to be an administrative action that may be a “related action” that is eligible for a whistleblower award, and Claimant satisfies the requirements for such an award. 3 Applying the award criteria in Rule 21F-6 of the Securities Exchange Act of 1934 to the specific facts and circumstances here, we find the proposed award amount is appropriate. 4 In reaching that determination, we positively assessed the following facts: (1) Claimant provided significant information about an ongoing fraud that led to DOJ’s charges (2) Claimant’s information enabled a large amount of money to be returned to investors harmed by the fraud; and (3) Claimant provided significant assistance by traveling at Claimant’s own expense to be interviewed by DOJ. Accordingly, it is hereby ORDERED that Claimant shall receive an award of more than $9.2 million, or percent (%) of the monetary sanctions collected or to be collected in the Related Actions. By the Commission. Vanessa A. Countryman Secretary