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Volume XI, Number 205

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Whistleblowers Help SEC Uncover Fraudulent Transfers, Receive Awards Totaling $3 Million

Today, the Securities and Exchange Commission (SEC) announced two whistleblower awards totaling approximately $3 million issued to anonymous individuals who assisted the SEC in successful enforcement actions.

According to the SEC award order, Claimant 1 provided early assistance to the SEC and helped Enforcement staff focus their time and resources on the fraud.

Claimant 2 helped staff uncover misappropriated funds and fraudulent transfers, both of which were recognized as high law enforcement interest.

The SEC Whistleblower Program has now awarded approximately $932 million to 172 individuals since 2012.

SEC whistleblowers who provide the Commission with timely, original information of fraud can become eligible for significant financial awards. If the SEC brings forth successful enforcement actions resulting in $1 million or more in sanctions, the whistleblower is then entitled to an award ranging between 10-30% of the sanctions collected.

Set forth under the Dodd Frank Act, the SEC Whistleblower Program protects the identity of SEC whistleblowers who file claims using a Form TCR.

Both U.S. citizens and non-U.S. citizens who witness securities frauds can become SEC whistleblowers. Whistleblowers can file as a group, or as individuals.

“Today’s whistleblowers played an instrumental role in helping the SEC bring this important action,” said Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower. “The first whistleblower provided information early in the investigation and helped SEC staff develop its case and focus its resources, while the second whistleblower helped staff uncover misappropriated funds and fraudulent transfers.”

Ben Kostyack also contributed to this article.

Copyright Kohn, Kohn & Colapinto, LLP 2021. All Rights Reserved.National Law Review, Volume XI, Number 165
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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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