SEC Awards Over $570,000 to Two Whistleblowers

The Securities and Exchange Commission today announced awards totaling over $570,000 to two whistleblowers who provided significant information and assistance that helped the Commission bring multiple successful enforcement actions.  The first whistleblower received an award of approximately $478,000 and the second whistleblower received an award of approximately $94,000.

“The whistleblowers in this matter played a critical role in the investigation and helped the agency bring antifraud charges that halted ongoing conduct,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower.  “The substantially higher award granted to the first whistleblower demonstrates the importance of providing information early in the investigation and the benefit to whistleblowers where the information leads to multiple enforcement actions.”   

The SEC has awarded approximately $396 million to 76 individuals 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.