The U.S. Securities and Exchange Commission (SEC) has declared rewards totaling over $104 million for seven individuals. Their contributions played a pivotal role in a successful SEC enforcement action and other related actions by a different agency. This collective reward ranks as the fourth highest in the history of the SEC’s whistleblower initiative.
These seven informants consisted of two groups of joint contributors and three individual contributors. Each one offered crucial information that either initiated or greatly aided an SEC investigation. Their cooperation with the SEC staff encompassed sharing vital documents, participating in interviews, and pointing out potential witnesses.
Creola Kelly, the Head of the SEC’s Whistleblower Office, commented, “The awards today underscore the importance of specific and trustworthy information in our enforcement activities. The data these informants shared enabled our Enforcement team to identify and address malpractices promptly.“
The funds for whistleblower rewards come from a special investor protection fund set up by Congress. This fund is solely sustained by financial penalties imposed on those who breach securities laws, paid to the SEC. Notably, no funds are deducted or reserved from affected investors for these rewards. To qualify for a reward, whistleblowers must voluntarily offer the SEC unique, timely, and reliable information that results in a successful enforcement action. They must also comply with the submission guidelines. The reward amount can vary between 10% to 30% of the total fines collected, provided the fines surpass $1 million.
In line with the Dodd-Frank Act, the SEC ensures the anonymity of whistleblowers, refraining from sharing any details that might expose their identity.
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If you have information about companies, people, or activities you consider questionable, please share it through our whistleblower system, Whistle42.
