On January 21, the U.S. Securities and Exchange Commission (SEC) awarded over $40 million to four whistleblowers. The awards, which stem from three separate enforcement actions, were granted to whistleblowers who voluntarily provided the SEC with original information about securities law violations.

“Credible tips of securities laws violations are a valuable component of the Commission’s enforcement program,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower. “The critical information provided by these whistleblowers aided the Commission’s investigations and helped the Commission bring these successful enforcement actions.”

In the first award order, the SEC granted approximately $37 million to two joint whistleblowers who provided information which led to successful enforcement actions by the SEC and another agency. Through the SEC Whistleblower Program’s related action provisions, the whistleblowers’ award is based on the sanctions collected by both the SEC and the other agency. The award order notes that whistleblowers “helped the staff understand the evidence which also led the staff to identify additional valuable information that contributed to the Commission’s charges.”

In the second award order, the SEC awarded $1.8 million to a whistleblower who provided the agency with information that prompted an investigation into the alleged misconduct. According to the award order, the SEC’s charges were directly based on the whistleblower’s information and...

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