SEC Issues $1.8 Million Whistleblower Award to a Company Outsider
Marks 100th Individual Awarded Under Whistleblower Program
FOR IMMEDIATE RELEASE
Washington D.C., Sept. 28, 2020 —
The Securities and Exchange Commission today announced an award of over $1.8 million to a company outsider, who expeditiously reported significant information to the Commission about ongoing securities law violations.
“Today’s award marks a milestone for the whistleblower program,” said SEC Chairman Jay Clayton. “This whistleblower is the 100th individual to receive an award under the program since its inception, and the 33rd individual awarded so far this year. The pace and the amounts of the awards in recent years underscore the Commission’s commitment to increasing the efficiency and effectiveness of the whistleblower program. We remain dedicated to working quickly to get more money into the hands of whistleblowers, including through the improvements that will be implemented as a result the amendments approved by the Commission last week.”
“Today’s award demonstrates the success of the program and the important role that company outsiders can play in halting ongoing violations,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “While many of our whistleblowers have been insiders, the agency also receives critical intelligence from company outsiders, like today’s whistleblower, whose swift reporting alerted staff to the violations that resulted in the success of this enforcement action.”
The SEC has awarded approximately $527 million since issuing its first award in 2012. All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards. 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 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million.
As set forth in the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers and does not disclose information that could reveal a whistleblower’s identity.
For more information about the whistleblower program and how to report a tip, visit www.sec.gov/whistleblower.