The U.S. Securities and Exchange Commission (SEC) has announced a substantial award of over $37 million to a whistleblower whose information significantly contributed to a successful enforcement action. The whistleblower’s insights were previously unknown to the SEC and played a crucial role in uncovering the case. The whistleblower collaborated with the SEC’s Enforcement staff, identifying potential witnesses and documents, which helped conserve agency resources.
Creola Kelly, Chief of the SEC’s Office of the Whistleblower, emphasized the impact of this award: “Today’s award illustrates the importance of the SEC’s whistleblower program, as the whistleblower’s information helped the agency return millions of dollars to harmed investors.”
Whistleblower awards are funded by an investor protection fund established by Congress. This fund is entirely financed through monetary sanctions imposed on securities law violators, ensuring that whistleblowers receive their awards without costing taxpayers. Eligible whistleblowers are those who voluntarily provide the SEC with original, timely, and credible information leading to a successful enforcement action. These awards can range from 10 to 30 percent of the monetary sanctions collected, provided these sanctions exceed $1 million.
