November 26, 2020

Volume X, Number 331

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SEC Announces Record-Breaking Whistleblower Award of $114 Million

Today, the Securities and Exchange Commission (SEC) announced a record-setting $114 million whistleblower award. The SEC case resulted in an award of approximately $52 million, while another $62 million came from the related actions of a separate agency.

According to the SEC award order, the whistleblower “suffered serious personal and professional hardships as a result of their activities.” The SEC whistleblower’s tip led the Commission to open the investigation.

As set forth under the Dodd Frank Act, the SEC Whistleblower Program rewards those who provide the Commission with original information of frauds resulting in monetary sanctions of $1 million or more. Whistleblowers can remain anonymous and confidential when filing award claims with the SEC.

“Today’s milestone award is a testament to the Commission’s commitment to award whistleblowers who provide the agency with high-quality information,” said SEC Chairman Jay Clayton. “Whistleblowers make important contributions to the enforcement of securities laws and we are committed to getting more money to whistleblowers as quickly and as efficiently as possible.”

The SEC Whistleblower Program has now issued over $675 million to 108 whistleblowers since 2012. This record-setting award is over two times more than the previous largest highest payout, which was an award of $50 million given to a whistleblower in June 2020.

Ben Kostyack also contributed to this article.

Copyright Kohn, Kohn & Colapinto, LLP 2020. All Rights Reserved.National Law Review, Volume X, Number 296
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About this Author

Mary Jane Wilmoth whistleblower protection Qui Tam/False Claims Attorney Kohn Kohn & Colapinto Law Firm
Managing Partner

Mary Jane Wilmoth is the firm’s managing partner, and works closely with the partners at KKC, specializing in environmental and nuclear whistleblower protection, Qui Tam/False Claims litigation, and labor and employment law. She joined the firm in 1992, and works on cases and hearings that involve complex nuclear and environmental regulations. In her efforts to assure such safeguards are upheld in the American workplace, she has helped to strengthen whistleblower rights in licensing and enforcement proceedings with the Nuclear Regulatory Commission. She has also defended whistleblowers at...

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