Whistleblowers receive more than $10.4 million from SEC

The Securities and Exchange Commission (SEC) revealed it has issued whistleblower awards in total of more than $10.4 million.

The regulator noted that several whistleblowers received the monetary awards. They provided information and assistance in three separate covered actions.

Two individual received $7.5 million from the Commission for the provision of new and significant information during an existing investigation. The whistleblowers alerted SEC of misconduct which occurred in different locations. One of the individuals also received an award for helping another agency.

The SEC also awarded over $2.4 million to two whisleblowers, who provided information, which led to the success of the enforcement action. One of the individuals delivered information which prompted the opening of the investigation, along with key evidence. The other one had a significant contribution to the investigation.

Three individuals received $435,000. Two of them alerted SEC of fraud together. This information led to the investigation which they continued to contribute to. Another individual supplied new, detailed and valuable information early in the investigation that was instrumental in developing the case.


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

Today’s whistleblowers provided information and assistance that proved critical to several enforcement actions. Their information allowed the agency to conserve significant resources and to bring each action more efficiently.

So far, the agency has awarded over $1.2 billion to a total of 233 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.

Two whistleblowers recently received $11.5 million award for providing information and assistance which contributed to the success of an SEC enforcement action.

Last Friday, the SEC alerted of fraudulent impersonators contacting people through phone calls or voicemail messages, which appeared to come from an SEC phone number.

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