SEC Awards $3.5 Million to Whistleblowers in Two Enforcement Actions

The Securities and Exchange Commission today announced awards totaling more than $3.5 million to three individuals in two separate enforcement proceedings.

In the first order, the SEC awarded approximately $2 million to a whistleblower whose information and assistance led to a successful SEC enforcement action.  The whistleblower alerted SEC staff to an ongoing fraud, prompting the opening of an investigation.  The whistleblower also participated in multiple voluntary interviews, and provided documents and additional information that saved staff time and resources. 

In the second order, the SEC awarded one whistleblower approximately $1 million and a second whistleblower approximately $500,000.  While both whistleblowers independently provided valuable information that assisted the staff in an existing investigation, the whistleblower receiving the larger award provided information and cooperation that was more impactful to the overall success of the case. 

“Whistleblowers can provide a wealth of information and ongoing assistance that helps the SEC bring enforcement actions quicker and more efficiently,” said Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower.  “Today’s whistleblowers not only stepped forward to report suspicious conduct, but also continued to provide critical additional assistance.” 

The SEC has awarded approximately $950 million to 193 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 any 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.