This week, the U.S. Securities and Exchange Commission (SEC) announced awards of more than $12 million to two whistleblowers who provided information and assistance in a successful SEC enforcement action. One whistleblower will receive an award of more than $9 million for information that prompted the opening of investigations. The other whistleblower who submitted crucial new information will receive an award of more than $3 million.
“Whistleblowers play a critical role in helping the SEC detect and prosecute wrongdoing and in protecting investors and the capital markets,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower. “The information and assistance provided by these two whistleblowers in helping to identify complex wrongdoing demonstrates the importance of the whistleblower program to the SEC’s enforcement efforts.“
Payments to whistleblowers are made from an investor protection fund established by the U.S. Congress. It is financed entirely through monetary sanctions paid to the SEC by securities law violators. 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. Whistleblower awards can range from 10 to 30 percent of the money collected when monetary sanctions exceed $1 million.
