In the Matter of the Claim for an Award
A whistleblower received over $27 million from the SEC for providing original, critical information that exposed concealed misconduct—including illegal overseas activities—by a company and its individual respondent, significantly advancing the investigation through sustained cooperation and internal reporting, leading to a record award increase beyond the staff’s recommendation.
The SEC awarded a whistleblower more than $27 million in connection with a covered enforcement action against a company and an individual respondent for concealed misconduct, including illegal activities conducted overseas. The whistleblower provided original information, extensive cooperation—including multiple meetings, key documents, and investigative leads—that saved the Commission substantial time and resources, and repeatedly raised concerns internally before reporting to the SEC. The Commission increased the award beyond its staff’s preliminary recommendation under Rule 21F-6 due to the significance of the information, the whistleblower’s exceptional assistance, and the absence of unreasonable delay, as their internal efforts were deemed commendable and timely.
The SEC awarded a whistleblower over $27 million for providing original, high-impact information that led to a successful enforcement action against a company and its individual respondent for concealed misconduct, including illegal activities occurring partly overseas. The whistleblower’s contributions were pivotal: they supplied critical documents, offered numerous investigative leads, and participated in multiple meetings with SEC staff, substantially advancing the investigation and conserving significant agency resources. Despite internal resistance, the whistleblower repeatedly and tenaciously raised concerns within their organization before reporting to the SEC, demonstrating both courage and diligence. The Commission increased the award beyond its initial staff recommendation because the whistleblower’s information was deemed highly significant, their cooperation exceptional, and their actions aligned with key law enforcement interests under Rule 21F-6. No reduction was applied for reporting delay, as the whistleblower’s persistent internal objections were viewed as a responsible and timely effort to resolve the misconduct internally. The award reflects the SEC’s commitment to incentivizing whistleblowers who expose complex, cross-border fraud and support robust enforcement. This case underscores the importance of internal reporting efforts in enhancing the effectiveness of regulatory oversight.
Extracted insights
- $27.00M $27,000,000 $10M–$100M
- person claimant receive whistleblower award
- person claims review staff
- agency original information to sec leading to successful enforcement
- agency secretary of sec
- agency Securities and Exchange Commission
- agency substantial ongoing assistance and cooperation to sec staff
- SEC received whistleblower award claim from Claimant
- Claims Review Staff recommended Claimant receive whistleblower award
- SEC increased award to Claimant to more than $27,000,000
- Claimant provided original information to SEC leading to successful enforcement
- Claimant provided substantial ongoing assistance and cooperation to SEC staff
- Claimant raised concerns internally repeatedly and strenuously about misconduct
- SEC determined no reduction for unreasonable reporting delay warranted
- Vanessa A. Countryman signed as Secretary of SEC
UNITED STATES OF AMERICA before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 88658 / April 16, 2020 WHISTLEBLOWER AWARD PROCEEDING File No. 2020-13 In the Matter of the Claim for an Award in connection with Redacted Redacted Notice of Covered Action Redacted ORDER DETERMINING WHISTLEBLOWER AWARD CLAIM The Commission received a timely whistleblower award claim from Redacted (“Claimant”) for the above referenced Notice of Covered Action. The Claims Review Staff (“CRS”) issued a Preliminary Determination recommending that Claimant receive a whistleblower award in the amount of Redacted of the monetary sanctions collected in the above referenced Covered Action, relating to Redacted Redacted Redacted (“the Covered Action”). 1 Claimant provided written notice of Claimant’s decision not to contest the Preliminary Determination. After considering the administrative record, we choose to depart from the Preliminary Determination’s recommendation and increase the award to Claimant to Redacted of the monetary sanctions collected or to be collected in the Covered Action, for a payout of more than $27,000,000. The record demonstrates that Claimant voluntarily provided original information to the Commission that led to the successful enforcement of the Covered Action. 2 1 For the purposes of making an award in this matter, we are treating the enforcement action against the individual respondent together with the action against the company as a single Covered Action, as the proceedings arise out of the same nucleus of operative facts. See Rule 21F-4(d). 2 See Exchange Act Section 21F(b)(1), 15 U.S.C. § 78u-6(b)(1); Exchange Act Rule 21F-3(a), 17 C.F.R. § 240.21F- 3(a). Applying the award criteria in Rule 21F-6 of the Securities Exchange Act of 1934 to the specific facts and circumstances here, we find an award of *** is appropriate. 3 In reaching that determination, we positively assessed the following facts: (i) Claimant’s information was significant as it allowed Commission staff to uncover hidden conduct occurring, in part, overseas; (ii) Claimant provided a substantial amount of ongoing assistance and cooperation by meeting with staff numerous times and providing relevant documents and critical investigative leads that advanced the investigation and saved the Commission a significant amount of time and resources; (iii) Claimant’s information helped the Commission further significant law enforcement interests by enabling the Commission to bring an action addressing a particular form of misconduct Redacted ; and (iv) Claimant repeatedly and strenuously raised Claimant’s concerns internally. In determining the appropriate award percentage, we also considered whether Claimant unreasonably delayed in reporting the information to the Commission. We are mindful of the importance of whistleblowers reporting their information to the Commission promptly, and will continue to make appropriate reductions to award percentages in cases where we find, under all of the facts and circumstances, that the whistleblower unreasonably delayed in doing so. However, we determined that no reduction for unreasonable reporting delay was warranted under the specific facts and circumstances of this case due to the strength of the positive factors and the fact that Claimant repeatedly and tenaciously objected to and escalated Claimant’s concerns about misconduct within Claimant’s organization. Accordingly, it is hereby ORDERED that Claimant shall receive an award of *** Redacted of the monetary sanctions collected in the Covered Action. By the Commission. Vanessa A. Countryman Secretary 3 In assessing the appropriate award amount, Exchange Act Rule 21F-6 provides that the Commission consider: (1) the significance of information provided to the Commission; (2) the assistance provided in the Commission action; (3) law enforcement interest in deterring violations by granting awards; (4) participation in internal compliance systems; (5) culpability; (6) unreasonable reporting delay; and (7) interference with internal compliance and reporting systems. 17 C.F.R. § 240.21F-6.
UNITED STATES OF AMERICA before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 88658 / April 16, 2020 WHISTLEBLOWER AWARD PROCEEDING File No. 2020-13 In the Matter of the Claim for an Award in connection with Redacted Redacted Notice of Covered Action Redacted ORDER DETERMINING WHISTLEBLOWER AWARD CLAIM The Commission received a timely whistleblower award claim from Redacted (“Claimant”) for the above referenced Notice of Covered Action. The Claims Review Staff (“CRS”) issued a Preliminary Determination recommending that Claimant receive a whistleblower award in the amount of Redacted of the monetary sanctions collected in the above referenced Covered Action, relating to Redacted Redacted Redacted (“the Covered Action”).1 Claimant provided written notice of Claimant’s decision not to contest the Preliminary Determination. After considering the administrative record, we choose to depart from the Preliminary Determination’s recommendation and increase the award to Claimant to Redacted of the monetary sanctions collected or to be collected in the Covered Action, for a payout of more than $27,000,000. The record demonstrates that Claimant voluntarily provided original information to the Commission that led to the successful enforcement of the Covered Action.2 1 For the purposes of making an award in this matter, we are treating the enforcement action against the individual respondent together with the action against the company as a single Covered Action, as the proceedings arise out of the same nucleus of operative facts. See Rule 21F-4(d). 2 See Exchange Act Section 21F(b)(1), 15 U.S.C. § 78u-6(b)(1); Exchange Act Rule 21F-3(a), 17 C.F.R. § 240.21F- 3(a). Applying the award criteria in Rule 21F-6 of the Securities Exchange Act of 1934 to the specific facts and circumstances here, we find an award of *** is appropriate.3 In reaching that determination, we positively assessed the following facts: (i) Claimant’s information was significant as it allowed Commission staff to uncover hidden conduct occurring, in part, overseas; (ii) Claimant provided a substantial amount of ongoing assistance and cooperation by meeting with staff numerous times and providing relevant documents and critical investigative leads that advanced the investigation and saved the Commission a significant amount of time and resources; (iii) Claimant’s information helped the Commission further significant law enforcement interests by enabling the Commission to bring an action addressing a particular form of misconduct Redacted ; and (iv) Claimant repeatedly and strenuously raised Claimant’s concerns internally. In determining the appropriate award percentage, we also considered whether Claimant unreasonably delayed in reporting the information to the Commission. We are mindful of the importance of whistleblowers reporting their information to the Commission promptly, and will continue to make appropriate reductions to award percentages in cases where we find, under all of the facts and circumstances, that the whistleblower unreasonably delayed in doing so. However, we determined that no reduction for unreasonable reporting delay was warranted under the specific facts and circumstances of this case due to the strength of the positive factors and the fact that Claimant repeatedly and tenaciously objected to and escalated Claimant’s concerns about misconduct within Claimant’s organization. Accordingly, it is hereby ORDERED that Claimant shall receive an award of *** Redacted of the monetary sanctions collected in the Covered Action. By the Commission. Vanessa A. Countryman Secretary 3 In assessing the appropriate award amount, Exchange Act Rule 21F-6 provides that the Commission consider: (1) the significance of information provided to the Commission; (2) the assistance provided in the Commission action; (3) law enforcement interest in deterring violations by granting awards; (4) participation in internal compliance systems; (5) culpability; (6) unreasonable reporting delay; and (7) interference with internal compliance and reporting systems. 17 C.F.R. § 240.21F-6.