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SEC Whistleblower Office Surpasses Record Number of Claimants Rewarded in a Fiscal Year with $500,000 Award

Today, the U.S. Securities and Exchange Commission (SEC) announced a whistleblower award of approximately $500,000 issued to an individual who filed under the “safe harbor” provision of the SEC whistleblower rules.

Under the “safe harbor” provision of the whistleblower rules, the SEC treats the information submitted by internal whistleblowers as though it had been submitted to the Commission at the same time it was reported internally to the company. To meet the requirements of the safe harbor provision, the securities fraud whistleblower must also submit their information to the SEC within 120 days of the internal report.

According to the award order, the SEC whistleblower provided original information that prompted the Commission staff to open an investigation into securities fraud. The whistleblower’s swift reporting and assistance in the investigation helped shut down an ongoing fraudulent scheme.

With this award, the SEC Whistleblower Office has now surpassed its record number of claimants issued awards in one fiscal year. In Fiscal Year 2021 alone, the SEC Whistleblower Office has awarded 40 individuals with nearly $200 million.

Established under the Dodd Frank Act, the SEC Whistleblower Office provides financial rewards to those who report original information of securities fraud.

SEC whistleblowers can remain fully confidential and anonymous when filing award claims with the Commission.

Ben Kostyack also contributed to this article.

Copyright Kohn, Kohn & Colapinto, LLP 2021. All Rights Reserved.National Law Review, Volume XI, Number 89
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About this Author

Mary Jane Wilmoth Whistleblower Attorney Kohn Kohn & Colapinto Law Firm
Managing Partner

Mary Jane Wilmoth is the firm’s managing partner. She litigated cases involving whistleblower protection for environmental and nuclear industry whistleblowers, and Qui Tam/False Claims whistleblowers. Ms. Wilmoth joined the firm in 1992 and worked on cases and hearings that involved complex nuclear and environmental regulations. In her efforts to uphold such safeguards in the American workplace, she has helped to strengthen whistleblower rights in licensing and...

202-342-6980
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