SEC Continues Whistleblower Payout Streak: $24 Million Awarded for Overseas Tip

In a follow-up to last week's headline-grabbing $98 million whistleblower award, the Securities and Exchange Commission (SEC) has announced another significant payout, this time totaling $24 million to two whistleblowers who provided crucial information about overseas misconduct.

The latest awards, announced on August 26, 2024, come just days after the SEC's record-breaking $98 million payout reported on August 23. This rapid succession of substantial awards underscores the SEC's commitment to its whistleblower program and its effectiveness in uncovering financial wrongdoing both domestically and internationally.

In an interesting twist, the second whistleblower to come forward received the larger share of the award. While the first tipster, who initiated the investigation, will receive $4 million, the second whistleblower has been awarded $20 million for providing information and cooperation that proved critical to the success of the enforcement actions.

Creola Kelly, Chief of the SEC's Office of the Whistleblower, highlighted the significance of these awards in exposing overseas misconduct. "The information would have been difficult to obtain in the absence of the whistleblowers as it pertained to conduct occurring abroad," Kelly stated.

This case, combined with last week's $98 million award, brings the total whistleblower payouts to an impressive $122 million in just four days. These substantial sums reinforce the message that the SEC's whistleblower program can be extremely lucrative for those who provide valuable information about securities violations.

As with all SEC whistleblower awards, these payments are made from an investor protection fund established by Congress and financed through monetary sanctions paid by securities law violators. This ensures that the program doesn't burden taxpayers while effectively incentivizing individuals to report wrongdoing.

The back-to-back nature of these large awards serves as a powerful reminder of the SEC's ongoing efforts to maintain market integrity and the vital role that whistleblowers play in this process. It also sends a clear message to potential whistleblowers worldwide: the SEC is willing to reward handsomely for information that leads to successful enforcement actions, regardless of where the misconduct occurs.

As the financial landscape continues to evolve and globalize, the SEC's whistleblower program remains a crucial tool in detecting and prosecuting securities fraud and other violations that might otherwise go unnoticed, particularly in international contexts.

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