April 18, 2021

Volume XI, Number 108

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April 15, 2021

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SEC Whistleblowers Issued $500,000 Award for Tipping Commission Off to Ongoing Fraud

Yesterday, the Securities and Exchange Commission (SEC) announced a $500,000 whistleblower award issued to two whistleblowers who provided tips that led to investigations by multiple agencies. The two SEC whistleblowers in this case will split the award evenly.

According to the award order, both whistleblowers provided “substantial, ongoing assistance that focused the investigation” and saved the SEC significant time and resources. The award order also noted that there was substantial law enforcement interest in the information provided, as it related to an ongoing fraud.

Since 2012, the SEC Whistleblower Program has awarded approximately $753 million to 140 whistleblowers.

SEC whistleblowers who provide the Commission with original evidence of fraud that results in successful enforcement actions that bring in over $1 million in sanctions can become eligible for awards ranging between 10-30% of the monies collected.

The Dodd Frank Act protects the confidentiality and identity of whistleblowers who file award claims with the SEC.

“This case demonstrates once again the value of the whistleblower program in helping to protect investors, and the Commission’s continued commitment to rewarding individuals who provide high-quality tips,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “The timely reporting of credible information by these whistleblowers provided the Commission the opportunity to quickly investigate and address misconduct that was actively harming investors.”

Ben Kostyack also contributed to this article.

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Copyright Kohn, Kohn & Colapinto, LLP 2021. All Rights Reserved.National Law Review, Volume XI, Number 61
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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...

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