SEC Whistleblower Program Provides Awards for Information About EB-5 Investment Fraud
Under the SEC Whistleblower Program, whistleblowers are eligible to receive a reward for providing the SEC with original information about violations of the federal securities laws, including EB-5 fraud. If the SEC uses a whistleblower’s information to bring a successful enforcement action with monetary sanctions in excess of $1 million, the whistleblower is eligible to receive 10% to 30% of the monetary sanctions collected as an award. The program permits whistleblowers to submit tips anonymously if represented by an attorney.
Since 2011, whistleblower tips have led to enforcement actions resulting in more than $1 billion in financial remedies from wrongdoers and the SEC has awarded more than $175 million to whistleblowers. One of these whistleblower tips, which led to a successful SEC enforcement action, underscores how the SEC Whistleblower Program is a critical tool to combat EB-5 investment fraud.