SEC Awards Whistleblowers Over $12 Million in Recognition of Vital Assistance

The Securities and Exchange Commission announced it was awarding two whistleblowers a total of more than $12 million for providing information and assistance in a successful enforcement action. The first whistleblower, who identified key witnesses, made persistent efforts to remedy the issues, and helped staff understand complex fact patterns and issues was rewarded with more than $9 million. The second whistleblower submitted important new information during the course of the investigation and will receive an award of more than $3 million. The awards were paid out of a Congressionally-established investor protection fund with no money taken or withheld from harmed investors. 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, with awards ranging from 10 to 30 percent depending on the amount of monetary sanctions. The SEC also protects the confidentiality of whistleblowers, not disclosing any information that would reveal their identity.