SEC Issues Joint Whistleblower Award of $6 Million to Individuals Key in Assisting Successful Enforcement Action
Today, the Securities and Exchange Commission (SEC) issued a $6 million joint whistleblower award to individuals whose reporting led to successful enforcement actions.
According to a press release, the whistleblowers provided the Commission with documents, identified wrongdoers, and participated in interviews that helped the SEC close in on suspected individuals involved in the misconduct.
According to the SEC award order, the whistleblowers alerted the Commission to a complex scheme involving multiple fraudsters and tens of millions of dollars in ill-gotten gains.
Established under the Dodd Frank Act, the SEC Whistleblower Program rewards whistleblowers who provide the Commission with original and timely information of frauds. SEC whistleblowers can become eligible for awards ranging from 10-30% of the penalties collected from enforcement actions if the sanctions exceed $1 million.
The SEC does not release any information that may reveal the identity of the whistleblower who is filing an award claim.
Since issuing its first award in 2012, the SEC Whistleblower Program has now awarded approximately $728 million to 118 individuals.
“The whistleblowers’ information led to multiple successful government actions related to a complex scheme involving several individuals and tens of millions of dollars in ill-gotten gains,” said Jane Norberg, Chief of the Office of the Whistleblower. “Today’s award demonstrates the significant contributions whistleblowers make to investigations that can save the SEC and other government agencies substantial time and resources.”
Ben Kostyack also contributed to this article.