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Big Whistleblower Business – U.S. SEC Awards $6 Million!

SEC Whistleblower Program
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FinTelegram knows from more than three years of working with whistleblowers how powerful this information channel is in the fight against cybercrime and scams. In the meantime, a multi-million dollar business for whistleblower attorneys has emerged in the U.S. The U.S. regulators SEC and CFTC in particular offer very attractive programs and rewards in the millions. The U.S. SEC recently awarded more than $6 million to two whistleblowers who provided critical information and assistance in two separate covered actions.

In the first order, the SEC issued an award of more than $3 million to a whistleblower solicited to invest in a product the agency believed was being misrepresented. The whistleblower expeditiously alerted the SEC to the potential misconduct, which launched investigations.

In the second order, the SEC awarded a whistleblower more than $3 million for providing information that prompted the opening of an investigation. The whistleblower, an insider, initially reported their concerns internally and later submitted a detailed tip and met with the SEC’s Enforcement staff multiple times to provide additional information during the investigation.

When confronted with potential wrongdoing, today’s whistleblowers refused to look the other way, but instead, chose to do the right thing by reporting it to the SEC,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower. “Insiders and outsiders alike can make a tremendous impact on the SEC’s ability to detect misconduct and protect investors when they decide to become whistleblowers.

The SEC has awarded approximately $1.3 billion to 276 individuals since the launch of its whistleblower program in 2012. All payments are made from an investor protection fund that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards. Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million.

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