SEC Whistleblower Awarded Over $9.2 Million For Successful Related Actions with DOJ
Today, the U.S. Securities and Exchange Commission (SEC) announced a whistleblower award of over $9.2 million issued to an individual whose reporting led to successful related actions with the Department of Justice (DOJ).
This whistleblower was previously granted an award for contributions to an SEC enforcement action, making them eligible for related-action awards that may follow.
This award marks the first SEC whistleblower award based on a non-prosecution agreement (NPA) or deferred prosecution agreement (DPA) since major amendments to the SEC Whistleblower Program became effective on December 7, 2020.
According to the award order, the SEC whistleblower provided significant information about ongoing fraud to the Commission, enabled large amounts of money to be returned to harmed investors, and traveled at their own expense to meet with the DOJ.
Under the Dodd Frank Act, SEC whistleblowers who report original information of fraud to the Commission can become eligible for whistleblower awards if the sanctions collected from enforcement actions exceed $1 million.
Since issuing its first award in 2012, the SEC Whistleblower Office has awarded over $750 million to 136 individuals. Whistleblowers who file award claims with the SEC are guaranteed full anonymity and confidentiality.
“This award reflects the Commission’s determination that a whistleblower’s eligibility for an award should not depend on the procedural vehicle a federal agency selects to resolve an enforcement matter,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “Deserving whistleblowers, like today’s awardee, will be rewarded regardless of the path used to successfully conclude the matter.”
Ben Kostyack also contributed to this article.