SEC Issues Largest-Ever $279 Million Whistleblower Award
The SEC has issued the largest-ever whistleblower award of $279 million for information and assistance that led to successful enforcement actions.
The U.S. Securities and Exchange Commission (SEC) has awarded $279 million to a whistleblower, marking the largest-ever award in the history of the agency’s whistleblower program. According to the SEC, the whistleblower provided information and assistance that led to successful enforcement actions.
This award is more than double the $114 million awarded in October 2020, and it highlights the significant incentive for whistleblowers to come forward with accurate information about potential securities law violations.
Whistleblowers play a crucial role in enforcing securities laws and holding bad actors accountable for their actions. The tips provided by whistleblowers have contributed to enforcement actions that have required bad actors to surrender over $4 billion in ill-gotten gains and interest.
The unnamed whistleblower who received this award provided assistance through multiple interviews and written submissions that aided the success of the regulator’s enforcement actions. While the whistleblower’s information did not prompt the opening of the Commission’s investigation, their information expanded the scope of the misconduct charged.
Whistleblowers may be eligible to receive an award if they voluntarily provide the regulator with timely and credible information that leads to successful enforcement actions. Awards can range between 10% to 30% of the money collected when the fines or sanctions exceed $1 million.
The SEC’s whistleblower program was established in 2010 as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The program provides monetary incentives for individuals to report possible violations of federal securities laws to the SEC.
Since its inception, the program has awarded over $1.8 billion to whistleblowers who have provided information leading to successful enforcement actions. The SEC has also taken steps to protect whistleblowers from retaliation by their employers, including prohibiting employers from retaliating against employees who report possible violations of federal securities laws to the SEC.
