The U.S. Securities and Exchange Commission (SEC) has announced a significant award of more than $37 million to a whistleblower whose efforts were instrumental in a successful enforcement action. The whistleblower initially reported the misconduct internally, prompting their employer to launch an investigation and eventually self-report the findings to the SEC. This self-reporting led the SEC to open its own investigation.
According to the SEC press release, the whistleblower’s continuous and comprehensive assistance was crucial for the SEC staff to fully understand the scope and details of the misconduct.
“Today’s whistleblower learned of misconduct and made the difficult decision to report their concerns. This individual, who was retaliated against for their whistleblowing activity, played a crucial role in the ultimate success of the enforcement proceeding,” stated Creola Kelly, Chief of the SEC’s Office of the Whistleblower.
The SEC’s whistleblower program is funded entirely through monetary sanctions paid by securities law violators and aims to protect investors by encouraging the reporting of violations. Whistleblowers can receive between 10% and 30% of the monetary sanctions collected when they provide the SEC with original, timely, and credible information that leads to enforcement actions resulting in sanctions exceeding $1 million.
This substantial award highlights the SEC’s commitment to supporting and protecting individuals who come forward with critical information about securities violations.
