On January 21, the U.S. Securities and Exchange Commission (SEC) issued three separate whistleblower award orders granting over $40 million to four whistleblowers. Each whistleblower voluntarily provided the agency with original information that led to a successful enforcement action.

“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.”

Through the SEC Whistleblower Program, qualified whistleblowers are entitled to a monetary award of 10-30% of the sanctions collected in connection with their disclosure in cases where the sanctions exceed $1 million.

In the first award order, the SEC awarded approximately $37 million to a pair of joint whistleblowers whose information and assistance led to a successful SEC action and a successful related action by another agency. Under the related action provisions of the Dodd-Frank Act, the SEC pays awards for sanctions collected by other agencies when those agencies’ enforcement actions utilize information provided to the SEC by a whistleblower. According to the award order, the joint whistleblowers “provided Enforcement staff with key evidence that significantly contributed to the staff’s investigation and the Commission’s charges” and “helped the...

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