The Securities and Exchange Commission today announced an award to a whistleblower totaling more than $28 million in connection with an SEC enforcement action and a related action by another federal agency.
The whistleblower’s information caused both the SEC and the other agency to open investigations that resulted in significant enforcement actions. Under the SEC’s whistleblower program, individuals who provide information to other agencies like this whistleblower may be eligible for an award in the related action if they are also eligible for an award in the underlying SEC action.
“The SEC has awarded more than $900 million over the life of the program, including almost $85 million to nine individuals in this month alone, which reflects the vitality and continued success of the SEC’s whistleblower program,” said Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower.
The SEC has awarded approximately $901 million to 163 individuals since issuing its first award in 2012. All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards. Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action. Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million.
As set forth in the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers and does not disclose any information that could reveal a whistleblower’s identity.
For more information about the whistleblower program and how to report a tip, visit www.sec.gov/whistleblower.