On July 19, the U.S. Securities and Exchange Commission (SEC) issued a whistleblower award of more than $17 million to an individual who provided the agency with original information that led to both a successful SEC enforcement action and a successful related enforcement by another agency.
Through the SEC Whistleblower Program, qualified whistleblowers, individuals who voluntarily provide the agency information which contributes to a successful enforcement action, are entitled to monetary awards of 10-30% of the funds collected in the enforcement action. Under the Dodd-Frank Act’s related action provisions, when a whistleblower’s disclosure to the SEC also leads to a successful related enforcement action by another agency, the whistleblower is also entitled to a monetary award based on the sanctions collected in the related action.
According to the award order, the whistleblower’s information “caused the staff to open the investigation that led to the Covered Action.” The whistleblower “also provided Enforcement staff with detailed information and documents early in the investigation” and “offered ongoing assistance by, among other things, speaking with the Enforcement staff on several occasions.” The SEC notes that in determining the exact percentage of the award, it recognized “the significance of the information provided by [the whistleblower] and the high law enforcement interest.”
“Today’s award underscores the SEC’s commitment to rewarding meritorious...
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