In the Matter of the Claim for an Award
A whistleblower received a $700,000 SEC award for voluntarily providing original, critical information that exposed a fraudulent reporting scheme, triggered the investigation, and significantly aided enforcement by identifying key documents and witnesses, while also internally raising concerns before reporting to the SEC.
The SEC awarded a whistleblower nearly $700,000, equal to a percentage of the monetary sanctions collected in a covered enforcement action involving a fraudulent reporting scheme. The claimant voluntarily provided original information that prompted the investigation, supplied critical documents and witness identifications, and helped conserve agency resources, while also internally reporting the misconduct in good faith. The Claims Review Staff’s preliminary award recommendation was adopted after the whistleblower declined to contest it, and a second claimant’s request was denied without appeal.
The SEC awarded a whistleblower nearly $700,000—equal to a percentage of the monetary sanctions collected—in connection with a covered enforcement action involving a fraudulent reporting scheme. The claimant voluntarily provided original, critical information that directly triggered the SEC’s investigation, including key documents and witness identifications that significantly advanced the case and conserved agency resources. Prior to contacting the SEC, the whistleblower internally raised concerns about the misconduct, demonstrating good faith efforts to remedy the violations. The Claims Review Staff issued a preliminary determination recommending the award, which the whistleblower did not contest, leading the SEC to formally adopt the recommendation. A second claimant’s request for an award was preliminarily denied and not appealed, making the denial final by operation of law. The specific entity involved and the exact percentage of the award relative to sanctions were redacted in the public order. This award underscores the SEC Whistleblower Program’s emphasis on timely, original, and substantively helpful disclosures that lead to successful enforcement actions.
Extracted insights
- $700K $700,000 $100K–$1M
- person claims review staff
- agency critical documents and information to sec staff
- agency original information to the sec
- person preliminary determination
- agency sec staff to fraudulent reporting scheme
- agency Securities and Exchange Commission
- person whistleblower award proceeding
- Claimant receive whistleblower award of almost $700,000
- Claimant provided original information to the SEC
- Claimant alerted SEC staff to fraudulent reporting scheme
- Claimant provided critical documents and information to SEC staff
- Claimant helped identify key documents and witnesses
- Claims Review Staff issued Preliminary Determination recommending whistleblower award
- SEC adopted recommendation of the Claims Review Staff
- Claimant did not contest Preliminary Determination
- Whistleblower Award Proceeding issued February 19, 2021
UNITED STATES OF AMERICA before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 91164 / February 19, 2021 WHISTLEBLOWER AWARD PROCEEDING File No. 2021-26 In the Matter of the Claim for an Award in connection with Notice of Covered Action ORDER DETERMINING WHISTLEBLOWER AWARD CLAIM The Claims Review Staff (“CRS”) issued a Preliminary Determination recommending that (“Claimant”) receive a whistleblower award of almost $700,000, which is equal to percent ( %) of the amounts collected or to be collected in the above-referenced Covered Action (“Covered Action”). Claimant provided written notice of Claimant’s decision not to contest the Preliminary Determination. 1 The recommendation of the CRS is adopted. The record demonstrates that Claimant voluntarily provided original information to the Commission and that this information led to the successful enforcement of the Covered Action. Claimant alerted Commission staff to a fraudulent reporting scheme in the Covered Action, which prompted the opening of the investigation. Claimant provided additional critical documents and information to Commission staff and helped to identify key documents and witnesses and helped conserve Commission time and resources. Finally, Claimant internally raised concerns about the perceived misconduct in an effort to remedy the violations. Accordingly, it is hereby ORDERED that Claimant shall receive an award of almost $700,000, which is equal to percent ( %) of the monetary sanctions collected or to be collected in the Covered Action. By the Commission. Vanessa A. Countryman Secretary
UNITED STATES OF AMERICA before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 91164 / February 19, 2021 WHISTLEBLOWER AWARD PROCEEDING File No. 2021-26 In the Matter of the Claim for an Award in connection with Notice of Covered Action ORDER DETERMINING WHISTLEBLOWER AWARD CLAIM The Claims Review Staff (“CRS”) issued a Preliminary Determination recommending that (“Claimant”) receive a whistleblower award of almost $700,000, which is equal to percent ( %) of the amounts collected or to be collected in the above-referenced Covered Action (“Covered Action”). Claimant provided written notice of Claimant’s decision not to contest the Preliminary Determination. 1 The recommendation of the CRS is adopted. The record demonstrates that Claimant voluntarily provided original information to the Commission and that this information led to the successful enforcement of the Covered Action. Claimant alerted Commission staff to a fraudulent reporting scheme in the Covered Action, which prompted the opening of the investigation. Claimant provided additional critical documents and information to Commission staff and helped to identify key documents and witnesses and helped conserve Commission time and resources. Finally, Claimant internally raised concerns about the perceived misconduct in an effort to remedy the violations. Accordingly, it is hereby ORDERED that Claimant shall receive an award of almost $700,000, which is equal to percent ( %) of the monetary sanctions collected or to be collected in the Covered Action. By the Commission. Vanessa A. Countryman Secretary