In the Matter of the Claim for Award
A company insider received a whistleblower award exceeding $500,000 from the SEC for providing original, voluntary information that led to the successful enforcement of well-hidden and hard-to-detect securities law violations, with the award set as a percentage of monetary sanctions collected and formally adopted after the insider declined to contest the preliminary determination.
The SEC awarded a company insider more than $500,000 for providing original, voluntary information that triggered a successful enforcement action involving concealed securities law violations. The award, calculated as a percentage of the monetary sanctions collected or to be collected, was recommended by the Claims Review Staff under Rule 21F-6 and adopted after the whistleblower declined to contest the preliminary determination within the 60-day window. Although the specific entity, fraud type, and total sanctions amount are redacted, the order confirms the insider’s critical role in uncovering complex, hard-to-detect misconduct.
A company insider received a whistleblower award exceeding $500,000 from the SEC for providing original, voluntary information that led to the successful enforcement of well-hidden and hard-to-detect securities law violations. The Claims Review Staff recommended the award based on factors under Rule 21F-6, including the significance, timeliness, and reliability of the information provided. The insider, acting as a company insider, initiated the SEC’s investigation into complex misconduct that would have otherwise remained concealed. On March 7, 2017, the whistleblower formally declined to contest the preliminary determination, triggering the SEC’s final adoption of the award under Rules 21F-10(f) and (h). The award is set as a percentage of all monetary sanctions collected in the covered action, including any future collections. No specific defendant, fraud type, or total sanction amount is disclosed due to redactions, but the order affirms the insider’s pivotal role in enabling the SEC’s enforcement success. The decision underscores the SEC’s commitment to incentivizing insiders to report sophisticated violations of securities laws.
Extracted insights
- $500K $500,000 $100K–$1M
- agency sec claims review staff
- agency sec investigation into securities law violations
- agency Securities and Exchange Commission
- Claimant provided original information to the SEC that led to successful enforcement of the Covered Action
- SEC Claims Review Staff recommended Claimant receive a whistleblower award
- Claimant shall receive whistleblower award of more than $500,000
- SEC issued Preliminary Determination on March 3, 2017
- Claimant provided notice decision not to contest Preliminary Determination on March 7, 2017
- Claimant was company insider
- Claimant instigated SEC investigation into securities law violations
UNITED STATES OF AMERICA before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 80571/ May 2, 2017 WHISTLEBLOWER AWARD PROCEEDING File No. 2017-9 In the Matter of the Claim for Award in connection with Redacted Redacted Notice of Covered Action ORDER DETERMINING WHISTLEBLOWER AWARD CLAIM On March 3, 2017, the Claims Review Staff issued a Preliminary Determination related to Notice of Covered Action Redacted which was issued in connection with the Commission’s successful resolution of the above-referenced enforcement action (the “Covered Action”). The Preliminary Determination recommended that Redacted Redacted (“Claimant”) receive a whistleblower award because Claimant voluntarily provided original information to the Commission that led to the successful enforcement of the Covered Action pursuant to Section 21F(b)(1) of the Securities Exchange Act of 1934 (the “Exchange Act”), 15 U.S.C. § 78u-6(b)(1), and Rule 21F-3(a) thereunder, 17 C.F.R. § 240.21F-3(a). Further, the Claims Review Staff recommended that Claimant’s award be set in the amount of Redacted percent Redacted of the monetary sanctions collected or to be collected in the Covered Action, which will yield an award of more than $500,000. In reaching this recommendation, the Claims Review Staff considered the factors set forth in Rule 21F-6, 17 C.F.R. § 240.21F-6, in relation to the facts and circumstances of Claimant’s application. On March 7, 2017, Claimant provided written notice to the Commission of Claimant’s decision not to contest the Preliminary Determination within the 60-day Redacted deadline set out in Rule 21F-10(e) promulgated under the Exchange Act, 17 C.F.R. § 240.21F-10(e). Upon due consideration under Rules 21F-10(f) and (h), 17 C.F.R. § 240.21F- 10(f), (h), the Preliminary Determination of the Claims Review Staff is adopted, including the award determination. The record demonstrates that Claimant has satisfied the criteria for award. Claimant, a company insider, provided information to the Commission that instigated the Commission’s investigation into well-hidden and hard-to- detect violations of the securities laws. Conclusion Accordingly, it is hereby ORDERED that Claimant shall receive an award of Redacted percent Redacted of the monetary sanctions collected in this Covered Action, including any monetary sanctions collected after the date of this Order. By the Commission. Brent J. Fields Secretary 2
UNITED STATES OF AMERICA before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 80571/ May 2, 2017 WHISTLEBLOWER AWARD PROCEEDING File No. 2017-9 In the Matter of the Claim for Award in connection with Redacted Redacted Notice of Covered Action ORDER DETERMINING WHISTLEBLOWER AWARD CLAIM On March 3, 2017, the Claims Review Staff issued a Preliminary Determination related to Notice of Covered Action Redacted which was issued in connection with the Commission’s successful resolution of the above-referenced enforcement action (the “Covered Action”). The Preliminary Determination recommended that Redacted Redacted (“Claimant”) receive a whistleblower award because Claimant voluntarily provided original information to the Commission that led to the successful enforcement of the Covered Action pursuant to Section 21F(b)(1) of the Securities Exchange Act of 1934 (the “Exchange Act”), 15 U.S.C. § 78u-6(b)(1), and Rule 21F-3(a) thereunder, 17 C.F.R. § 240.21F-3(a). Further, the Claims Review Staff recommended that Claimant’s award be set in the amount of Redacted percent Redacted of the monetary sanctions collected or to be collected in the Covered Action, which will yield an award of more than $500,000. In reaching this recommendation, the Claims Review Staff considered the factors set forth in Rule 21F-6, 17 C.F.R. § 240.21F-6, in relation to the facts and circumstances of Claimant’s application. On March 7, 2017, Claimant provided written notice to the Commission of Claimant’s decision not to contest the Preliminary Determination within the 60-day Redacted deadline set out in Rule 21F-10(e) promulgated under the Exchange Act, 17 C.F.R. § 240.21F-10(e). Upon due consideration under Rules 21F-10(f) and (h), 17 C.F.R. § 240.21F- 10(f), (h), the Preliminary Determination of the Claims Review Staff is adopted, including the award determination. The record demonstrates that Claimant has satisfied the criteria for award. Claimant, a company insider, provided information to the Commission that instigated the Commission’s investigation into well-hidden and hard-to- detect violations of the securities laws. Conclusion Accordingly, it is hereby ORDERED that Claimant shall receive an award of Redacted percent Redacted of the monetary sanctions collected in this Covered Action, including any monetary sanctions collected after the date of this Order. By the Commission. Brent J. Fields Secretary 2 ORDER DETERMINING WHISTLEBLOWER AWARD CLAIM Conclusion