Whistleblower receives over $28 million from SEC

The Securities and Exchange Commission (SEC) revealed it has awarded a whistleblower with a total of over $28 million.

The US watchdog said that the award was connected to enforcement action and a related action by another federal agency.

The whistleblower provided information that caused the SEC and the other agency to open investigations which consequently lead to significant enforcement actions. Under the whistleblower program, the announcement said, “individuals who provide information to other agencies like this whistleblower may be eligible for an award in the related action if they are also eligible for an award in the underlying SEC action”.

Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower said:

The SEC has awarded more than $900 million over the life of the program, including almost $85 million to nine individuals in this month alone, which reflects the vitality and continued success of the SEC’s whistleblower program.


So far, the agency has awarded over $901 million to a total of 163 individuals since the first award was issued in 2012. Payment of the awards is taken out of an investor protection fund set up by Congress. It is financed through monetary sanctions of security law violations paid to SEC.

To be eligible for the award, a whistleblower needs to voluntarily provide the commission with reliable information that leads to successful enforcement action. The awards range between 10 and 30 % of the money collected by SEC when the sanction is for more than $1 million.

According to the Dodd-Frank Act, SEC must protect the identity of the whistleblower and not disclose any information that could reveal it.

The SEC announced in an official press release that a sales agent based at 1 Global Capital, LLC, Roy Y. Gagaza, was charged due to substantial links being found concerning the trading of unregistered securities of 1 Global.

Earlier in May, the SEC awarded a whistleblower with $3.6 million for providing information and assistance significant to successful SEC enforcement action.

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