Whistleblower Business – U.S. awards $40 million to two whistleblowers!

SEC Whistleblower Program
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The U.S. Securities and Exchange Commission (SEC) announced awards of approximately $40 million to two whistleblowers whose information and assistance contributed to the success of an SEC enforcement action. The first whistleblower, whose information caused the opening of the investigation and exposed difficult-to-detect violations, will receive an award of approximately $32 million. The second whistleblower will receive approximately $8 million for submitting important new information even though he waited several years to report to the Commission.

These whistleblowers reported critical information that aided the Commission’s investigation and provided extensive, ongoing cooperation that helped the Commission to stop the wrongdoing and protect the capital markets.

Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower

The SEC has awarded approximately $1.1 billion to 218 individuals since issuing its first award in 2012. All payments are made out of an investor protection fund established by the U.S. Congress 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 successful enforcement action.  Whistleblower awards can range from 10-30% of the money collected when the monetary sanctions exceed $1 million.

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