The U.S. SEC has awarded over $98 million to two whistleblowers for their critical contributions to enforcement actions. The two whistleblowers’ information and assistance led to an SEC enforcement action and an action brought by another agency. The first whistleblower’s tip prompted the opening of the investigations, and thereafter provided critical additional information and ongoing assistance.
Key Details:
- Award Breakdown: $82 million awarded to the first whistleblower who initiated the investigations and provided ongoing assistance. $16 million awarded to a second whistleblower who contributed significantly to one aspect of the actions.
- Significance: According to Creola Kelly, chief of the SEC’s Office of the Whistleblower, whistleblower tips are crucial for uncovering violations that may otherwise go undetected.
- Funding: Awards are paid from an investor protection fund, financed by sanctions paid by securities law violators, not taxpayer dollars.
- Eligibility: Whistleblowers can receive 10-30% of monetary sanctions if their information leads to sanctions exceeding $1 million.
- Confidentiality: The SEC protects the identities of whistleblowers under the Dodd-Frank Act.
Insight:
Whistleblower tips are vital for the ability of regulators to detect and prosecute securities law violations, reinforcing the importance of the whistleblower program in protecting investors. In 2023, the SEC awarded nearly $600 million—the highest annual total by dollar value in the Program’s history—to 68 individual whistleblowers. These totals include a single award for almost $279 million—the largest in the history of the Program. Until the end of 2023, the SEC has awarded more than $1.9 billion to 397 individual whistleblowers since the beginning of the Program in 2011.
Read More: SEC press release
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