Whistleblower receives over $5.3 million from SEC

The Securities and Exchange Commission (SEC) revealed it has awarded a whistleblower over $5.3 million.

The US watchdog noted that the award was related to separate enforcement proceedings.

The whistleblower received $4 million for providing information that caused the SEC to open an investigation that led to successful enforcement action.  The regulator highlighted that the whistleblower provided “extraordinary assistance, participating in hours of telephonic interviews and communicating dozens of times with investigative staff.” They also identified key witnesses and gave the SEC documents.

Three individual also received $1.3 million from the agency. They provided information that prompted the opening of an investigation.


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

These whistleblowers provided critical information that alerted Commission staff of the violations. Their information and continuing assistance played a key role in the successful resolution of the actions.

So far, the agency has awarded over $937 million to a total of 178 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.

Earlier in June, the SEC announced in an official press release that it charged 3 individuals concerning an ICO scam worth around $30 million.

Whistleblower recently received over a $28 million award from the SEC for providing information that caused the SEC and the other agency to open investigations which consequently lead to significant enforcement actions.

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