SEC Awards Over $28 Million to Seven Whistleblowers for Vital Contributions to Enforcement Success

The Securities and Exchange Commission (SEC) has granted awards totaling more than $28 million to seven individuals. This collective effort of whistleblowers resulted in successful SEC enforcement actions, showcasing the effectiveness of the whistleblower program in upholding investor protection and market integrity.

The seven whistleblowers, comprising a single claimant and two groups of joint claimants, made substantial contributions to an SEC investigation. The initial claimant and the first set of joint claimants provided intricate and timely information early in the investigation, proving instrumental in saving considerable time and resources for SEC staff. The second set of joint claimants, although providing new information later in the investigation, played a crucial role in advancing the case.

Creola Kelly, Chief of the SEC’s Office of the Whistleblower, emphasized the significance of the whistleblowers' contributions, stating, “These whistleblowers provided valuable information and substantial assistance that played a critical role in the SEC returning millions of dollars to harmed investors.”

Notably, the awarded funds are disbursed from an investor protection fund, established by Congress. This fund is exclusively financed through monetary sanctions imposed on securities law violators, ensuring that no funds are diverted from harmed investors. Whistleblowers become eligible for awards when they voluntarily provide the SEC with original, credible, and timely information that leads to a successful enforcement action. Award amounts typically range between 10 to 30 percent of the collected money when monetary sanctions exceed $1 million. This initiative not only encourages a culture of reporting but also underscores the SEC's commitment to rewarding those who contribute significantly to the regulatory landscape.

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