The Securities and Exchange Commission (SEC) revealed it has awarded a whistleblower with over $279 million, the largest-ever award the regulator has issued.
The whistleblower provided information and assistance that led to the successful enforcement actions.
Additionally, SEC highlighted that the whistleblower that the award was more than double the previous largest-ever it has issued of $114 million in October 2020.
Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, said:
The size of today’s award – the highest in our program’s history – not only incentivizes whistleblowers to come forward with accurate information about potential securities law violations, but also reflects the tremendous success of our whistleblower program. This success directly benefits investors, as whistleblower tips have contributed to enforcement actions resulting in orders requiring bad actors to disgorge more than $4 billion in ill-gotten gains and interest. As this award shows, there is a significant incentive for whistleblowers to come forward with accurate information about potential securities law violations.
Creola Kelly, Chief of the SEC’s Office of the Whistleblower, added:
The whistleblower’s sustained assistance including multiple interviews and written submissions was critical to the success of these actions. While the whistleblower’s information did not prompt the opening of the Commission’s investigation, their information expanded the scope of misconduct charged.
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 December, the regulator awarded a whistleblower with more than $37 million.
