Aggregated News From Investment Management Regulators

SEC Issues Whistleblower Awards Totaling Nearly $5.3 Million

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The Securities and Exchange Commission today announced awards of nearly $5.3 million to whistleblowers who provided information and assistance in separate enforcement proceedings.

In the first order, the SEC awarded a whistleblower nearly $4 million for providing information that caused the SEC to open an investigation that led to a successful enforcement action. The whistleblower provided extraordinary assistance, participating in hours of telephonic interviews and communicating dozens of times with investigative staff. The whistleblower also identified key witnesses and provided documents to the staff.

In the second order, the SEC awarded approximately $1.3 million to three individuals who provided information that prompted the opening of an investigation. The first claimant, who received the largest award, provided substantial, ongoing assistance that conserved SEC time and resources and played an important role in the success of the enforcement action.

“These whistleblowers provided critical information that alerted Commission staff of the violations,” said Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower. “Their information and continuing assistance played a key role in the successful resolution of the actions.”

The SEC has awarded approximately $937 million to 178 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.

This news item was originally published by the US Securities and Exchange Commission (SEC US). For more information, see the Source Link.

Regulator Information

Abbreviation: SEC
Jurisdiction: United States

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