On May 6, the U.S. Securities and Exchange Commission (SEC) issued $3.5 million in whistleblower awards to four individuals who provided information which contributed to the success of an SEC enforcement action and a related enforcement action by another agency.
“Credible and specific tips of securities laws violations, whether from corporate insiders or members of the public, strengthen the Commission’s enforcement program,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower. “Today’s whistleblowers provided valuable information that assisted the Commission’s investigation.”
Through the SEC Whistleblower Program, qualified whistleblowers, individuals who voluntarily provide original information that leads to a successful enforcement action, are entitled to a monetary award of 10-30% of funds recouped by the government. Under the Dodd-Frank Act’s (DFA) related action provision, when the information provided to the SEC by a whistleblower also leads to a successful enforcement action by another agency, the whistleblower is entitled to an award based on the money recovered in this “related” enforcement action.
Three of the whistleblowers filed a joint disclosure which caused the SEC to open an investigation. The whistleblowers also provided the information to the agency which carried out the related action. According to the award order, “there were no negative factors at issue in [the whistleblowers’] submission” and the whistleblowers “alleged retaliation and...
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