On December 17, the U.S. Securities and Exchange Commission (SEC) issued an award of more than $900,000 to a whistleblower who voluntarily provided the agency with original information that led to a successful enforcement action. The SEC also denied an award application for the same enforcement action because the individual’s disclosure did not contribute to the success of the action.
Qualified SEC whistleblowers are entitled to monetary awards of 10-30% of the funds collected by the government in connection with their disclosure. The SEC Whistleblower Program also provides anti-retaliation protections to whistleblowers. One of these protections is confidentiality; thus, the SEC does not disclose any identifying information about award recipients.
According to the award order, the awarded whistleblower “provided helpful information, including documents and analysis… that caused Enforcement staff to open an investigation that led to the Covered Action and the return of money to harmed investors.” The order further notes that the whistleblower “had subsequent communications with staff through [her/his] counsel.”
The award order states that the information provided by the denied individual does not qualify for a whistleblower award “because it did not cause the Covered Action investigation to be opened or cause staff to inquire into different conduct in the Covered Action investigation.” The denied individual reportedly did not contact the SEC until six month after the...
By Dean Aubrey Caratiquet As part of an intensified campaign against the spread of falsehoods that continue to undermine the integrity of the government and pose a threat to national security, PCO...