On November 28, the U.S. Securities and Exchange Commission (SEC) announced that a whistleblower “who provided new and critical information that led to the success of an enforcement action” received a $20 million whistleblower award. The award order sheds light on the $20 million award and two other individuals who tried to be awarded for this enforcement action.
Through the SEC Whistleblower Program, qualified whistleblowers are entitled to awards of 10-30% of the sanctions collected in the enforcement action aided by their disclosure. Thus, in each whistleblower-assisted case, 70-90% of sanctions are returned to harmed investors or the U.S. Treasury.
The award order states that the whistleblower who won the award, Claimant 1, “voluntarily provided original information to the Commission and that this original information led to the successful enforcement of the Covered Action.” The whistleblower “provided significant information and continuing helpful assistance that enabled Commission staff to more quickly and efficiently investigate” issues related to the case, specifics of which remain redacted.
However, Claimant 1 “was involved for a short period and at the direction of his/her supervisor in the conduct underlying part of the Covered Action” and also “delayed reporting for over two years after being involved in such conduct.” Nevertheless, the SEC deemed $20 million the appropriate award amount that accounts “for both his/her level...
Continue without agreeing We value your privacy With your agreement, we and our 386 partners use cookies or similar technologies to store, access, and process personal data like your visit on this...