The Securities and Exchange Commission (SEC) revealed it has issued four whistleblower awards totaling more than $40 million.
The regulator noted that the whistleblowers who received the monetary awards provided information and assistance in three separate actions.
SEC awarded two joint whistleblowers with $37 million for the first case. The whistleblowers delivered key evidence to the regulator which advanced the success of the proceedings. They also provided ongoing assistance which helped the SEC staff uncover additional information in the investigation.
Another whistleblower received $1.8 million for providing important information, prompting the SEC to open an investigation. The individual continued to help the regulator with interviews and additional documents.
The third award SEC issued was $1.5 million to a whistleblower whose information shaped staff’s investigative strategy and significantly contributed to the success of the covered action. The individual provided substantial and ongoing assistance to the SEC by helping them identify issues.
Creola Kelly, Chief of the SEC’s Office of the Whistleblower, said:
Credible tips of securities laws violations are a valuable component of the Commission’s enforcement program. The critical information provided by these whistleblowers aided the Commission’s investigations and helped the Commission bring these successful enforcement actions.
Whistleblower awards
So far, the agency has awarded over $1.2 billion to a total of 245 individuals since the first award was issued in 2012. Payment of the awards is taken out of an investor protection fund set up by Congress. It is financed through monetary sanctions of security law violations paid to SEC.
To be eligible for the award, a whistleblower needs to voluntarily provide the commission with reliable information that leads to successful enforcement action. The awards range between 10 and 30 % of the money collected by SEC when the sanction is for more than $1 million.
According to the Dodd-Frank Act, SEC must protect the identity of the whistleblower and not disclose any information that could reveal it.
Earlier in January, SEC awarded a whistleblower with over $13 million.
