SEC Whistleblower Program is Gaining Momentum and Paying Big Bounties
On January 23, the SEC announced that its whistleblower program will pay out to three whistleblowers a combined award of $7 million. The whistleblowers’ awards were for helping the SEC pursue an investment scheme.
One whistleblower gave the SEC the initial information that launched the SEC investigation. That whistleblower will receive more than $4 million. Two other whistleblowers jointly provided additional evidence that also contributed to the SEC’s successful enforcement action. Those two whistleblowers will split more than $3 million.
The Chief of the SEC’s Office of the Whistleblower credited the whistleblowers with helping the SEC, not only open the investigation, but working with them to complete it.
The overall SEC whistleblower program has resulted in enforcement actions recovering more than $935 million. Nearly $150 million has, likewise, been awarded to whistleblowers.
By law, the SEC protects the identity of all whistleblowers. Whistleblower awards can range from 10 percent to 30 percent of the monetary sanctions collected when they exceed $1 million. All awards are paid out of Congress’ investor-protection fund that is funded by monetary sanctions paid to the SEC by securities law violators.