The SEC whistleblower rules require the SEC to pay awards to eligible whistleblowers who voluntarily provide the SEC with original information that leads to an enforcement action with monetary sanctions in excess of $1 million. A whistleblower may receive an award of between 10% and 30% of the monetary sanctions collected in the successful enforcement action.
Since the inception of the SEC Whistleblower Program, the SEC has received more than 52,400 whistleblower tips. The rules of the program permit whistleblowers to submit tips anonymously to the SEC if represented by an attorney. As of January 10, 2020, the SEC has awarded approximately $1.2 billion to whistleblowers. The largest SEC whistleblower awards to date are $114 million, $110 million and $50 million.
Prior to submitting a tip, whistleblowers should understand the SEC Whistleblower Program’s rules that govern the percentage of a potential whistleblower award. The rules include both positive and negative factors that the SEC considers when determining the appropriate award percentage of between 10% to 30% of the monetary sanctions collected in an enforcement action. Leveraging the SEC whistleblower rules effectively can potentially increase an award by millions of dollars.
Positive Factors That May Increase a Whistleblower’s Award
The SEC Whistleblower Program’s rules authorize the SEC to increase a whistleblower’s award based on several factors. Whistleblowers and their counsel can take concrete steps to...
The SEC is accusing a Florida fund manager of pocketing seven times his allowed fees and misrepresenting investment holdings to mislead investors. In a complaint filed in the Middle District of Fl...