InfoBytes Blog
SEC issues multiple whistleblower awards
On July 19, the SEC announced that it awarded whistleblowers nearly $17 million for providing information and assistance in a covered action and related action. According to the redacted order, the whistleblower provided information that caused the SEC to open the investigation that resulted in the covered action. The whistleblower also provided SEC staff with detailed information and documents early in the investigation, and offered ongoing assistance by, among other things, speaking with the SEC staff on several occasions, which led to the successful enforcement of the covered action. Further, because the whistleblower provided original information to staff that contributed to the successful enforcement of the related action, the whistleblower is also entitled to an award based on amounts collected in the related action.
Earlier in the week, the SEC announced whistleblower awards totaling more than $6 million to two whistleblowers for providing information and assistance in two separate covered actions. According to the first redacted order, the SEC awarded approximately $3 million to a whistleblower who was solicited to invest in a product that they believed was being misrepresented. The whistleblower then notified the SEC, which prompted an investigation. According to the second redacted order, the SEC awarded more than $3 million to an individual who provided information that prompted SEC staff to open an investigation, which led to a successful enforcement action. The whistleblower reported their concerns internally, then submitted a detailed tip and met with SEC staff on multiple occasions to provide additional information throughout the investigation.
The SEC has awarded approximately $1.3 billion to 276 individuals since issuing its first award in 2012.