SEC Issues Awards Totaling Approximately $3 Million to Three Whistleblowers

The Securities and Exchange Commission today announced three awards totaling approximately $3 million to whistleblowers who provided information and assistance in three separate covered actions.

In the first order, the SEC issued an award of approximately $1.5 million to a whistleblower who provided new information that caused the SEC staff to commence an examination and later open a new investigation into potential securities laws violations. The whistleblower also assisted the staff during the course of the investigation.

In the second order, the SEC awarded a whistleblower more than $1 million for providing information that prompted the opening of an investigation. The whistleblower, an insider who also reported concerns internally, provided continuing assistance to the staff, including multiple interviews.

In the third order, the SEC awarded more than $400,000 to a whistleblower whose comprehensive tip led to an investigation, and thereafter provided substantial ongoing cooperation. The whistleblower also raised concerns internally, causing the conduct to cease.

“Whistleblowers are instrumental to the agency’s ability to detect wrongdoing,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower. “Each of today’s whistleblowers alerted SEC staff to the securities laws violations and then provided essential assistance that aided the investigation.”

The SEC has awarded approximately $1.2 billion to 254 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.