Whistleblower Power – SEC Issues Record $114 Million Whistleblower Award

The fight against scams and cybercrime is unthinkable without the support of whistleblowers. Most regulators and law enforcement agencies have established whistleblower reward programs. The U.S. Securities and Exchange Commission (SEC) today announced an award of over $114 million to a whistleblower whose information and assistance led to the successful enforcement actions. 

The $114 million award consists of an approximately $52 million award in connection with the SEC case and an approximately $62 million award arising out of the related actions by another agency.  The combined $114 million reward marks the highest award in the agency’s whistleblower reward program’s history, and eclipses the next highest award of $50 million made to an individual in June 2020.

Today’s milestone award is a testament to the Commission’s commitment to award whistleblowers who provide the agency with high-quality information. Whistleblowers make important contributions to the enforcement of securities laws and we are committed to getting more money to whistleblowers as quickly and as efficiently as possible.”

SEC Chairman Jay Clayton

The actions of the whistleblower awarded would have been extraordinary, Jane Norberg, Chief of the SEC’s Office of the Whistleblower said. The SEC has awarded approximately $676 million to 108 individuals since issuing its first award in 2012. 

All whistleblower payments are made out of 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.

Leave a Comment

Your email address will not be published. Required fields are marked *