SEC Awards Almost $3 Million Total in Separate Whistleblower Awards

The Securities and Exchange Commission today announced two separate whistleblower awards for total payments of almost $3 million.

In the first order, the SEC awarded a whistleblower over $2.2 million for providing important, high-quality information that aided an investigation. The whistleblower’s tip helped the SEC bring an enforcement action that resulted in the return of millions of dollars to harmed clients. 

In the second order, the SEC awarded almost $700,000 to a whistleblower who alerted SEC staff to a fraudulent reporting scheme, prompting the opening of the investigation. The whistleblower provided critical evidence to the staff, and helped identify key documents and witnesses.

“Both whistleblowers who received awards today raised their concerns internally and then timely reported those concerns to the Commission,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “The return of millions of dollars to harmed clients in one matter, and the uncovering of a fraudulent scheme in the other matter, underscore the tremendous value that whistleblowers provide.”

The SEC has awarded approximately $741 million to 136 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.