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  • SEC issues more than $16 million in whistleblower awards

    Securities

    On August 9, the SEC announced whistleblower awards totaling more than $16 million to two whistleblowers for providing information and assistance in a successful SEC enforcement action. According to the redacted order, the SEC awarded approximately $13 million to one of the whistleblowers for prompting the opening of the investigation and providing critical information, including information on “difficult to detect” violations. The whistleblower also identified key witnesses and helped staff “understand complex fact patterns and issues related to the matters under investigation.” The second whistleblower received a more than $3 million award for submitting important new information during the course of the investigation, which provided the staff a more complete picture. The SEC attributed the lower award amount to the fact that the second whistleblower delayed reporting the wrongdoing for several years, whereas the first whistleblower “persistently alerted the Commission to the ongoing abusive practices for a number of years before the investigation was opened.”

    The SEC has awarded more than $1.3 billion to 281 individuals since issuing its first whistleblower award in 2012.

    Securities Enforcement Whistleblower SEC

  • SEC issues multiple whistleblower awards

    Securities

    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.

    Securities Enforcement SEC Whistleblower

  • SEC awards whistleblowers $3.5 million

    Securities

    On May 6, the SEC announced awards totaling nearly $3.5 million to four whistleblowers whose information and assistance led to successful SEC enforcement actions. According to the redacted order, three joint whistleblowers provided SEC staff with information that led to the opening of a new investigation, which resulted in a successful enforcement action. These joint whistleblowers’ information also caused another agency to open an investigation and led to a separate successful action. Another whistleblower provided insights based on an independent analysis of information that focused the staff’s attention on allegations that were not previously known to staff that advanced the investigation. The SEC has awarded approximately $1.3 billion to 273 individuals since issuing its first award in 2012.

    Securities SEC Enforcement Whistleblower

  • SEC awards $6 million to whistleblowers

    Securities

    On April 25, the SEC announced awards totaling nearly $6 million to two groups of whistleblowers whose information and assistance led to a successful SEC enforcement action. According to the redacted order, the first group of whistleblowers provided the SEC with key documents that led the staff to seek additional documents from the respondent, and the second group provided firsthand accounts of the misconduct at issue. Both groups, which consisted of five individuals, provided ongoing assistance throughout the investigation.

    The SEC has awarded approximately $1.2 billion to 268 individuals since issuing its first award in 2012.

    Securities SEC Whistleblower Enforcement

  • CFTC awards $625,000 to whistleblowers

    Securities

    On March 28, the CFTC announced approximately $625,000 in awards to four whistleblowers whose information led the agency to a successful Commodity Exchange Act enforcement action. The associated order noted that the claimants “provided the Commission with original information,” and “each provided ongoing cooperation and assistance to Division staff, which significantly contributed to the success of the Covered Action.” One claimant received a higher award percentage to recognize that he or she provided the highest level of ongoing assistance and cooperation.

    The CFTC has awarded approximately $330 million to whistleblowers since the enactment of its Whistleblower Program under Dodd-Frank, with whistleblower information helping prosecute enforcement actions leading to more than $3 billion in monetary sanctions.

    Securities CFTC Whistleblower Enforcement Commodity Exchange Act

  • SEC awards $1.25 million to whistleblower

    Securities

    On March 25, the SEC announced that it awarded a whistleblower $1.25 million for providing specific and credible information that prompted SEC staff to begin an investigation that resulted in a successful SEC covered action. According to the redacted order, the whistleblower voluntarily provided original information and participated extensively in assisting SEC staff through identifying witnesses, explaining critical documents, and helping focus the investigation on key issues, which saved SEC time and resources.

    The SEC has awarded approximately $1.2 billion to 256 individuals since issuing its first award in 2012.

    Securities SEC Whistleblower Enforcement

  • SEC issues $3 million in whistleblower awards

    Securities

    On March 18, the SEC announced whistleblower awards totaling over $3 million to three individuals for providing information and assistance in three separate covered actions. According to the first redacted order, the SEC awarded approximately $1.5 million to a whistleblower for providing information which led to the successful prosecution of an enforcement action. Additionally, the whistleblower assisted the staff throughout the investigation. According to the second redacted order, the SEC awarded over $1 million to an individual who provided information that prompted Commission staff to open an investigation that led to the successful prosecution of an enforcement action. The whistleblower continued to provide assistance by participating in interviews and giving additional documents. In the third redacted order, the SEC awarded over $400,000 to a whistleblower whose comprehensive tip led to an investigation and who provided substantial ongoing cooperation. The whistleblower also raised concerns internally, causing the conduct to cease.

    The SEC has awarded approximately $1.2 billion to 254 whistleblowers since issuing its first award in 2012.

    Securities Whistleblower Enforcement SEC

  • CFTC awards $10 million to whistleblower

    Securities

    On March 18, the CFTC announced an approximately $10 million award to a whistleblower whose information led the agency to a successful Commodity Exchange Act enforcement action. According to the CFTC, the claimant voluntarily provided original, “useful information at the earliest stages of the investigation and later provided supplemental information.” The associated order also noted that because of the claimant’s allegations, CFTC staff were able to draft the earliest round of subpoenas.

    The CFTC has awarded approximately $330 million to whistleblowers since the enactment of its Whistleblower Program under Dodd-Frank, with whistleblower information helping the CFTC prosecute enforcement actions leading to more than $3 billion in monetary sanctions. 

    Securities CFTC Enforcement Commodity Exchange Act Whistleblower

  • SEC awards $14 million to whistleblower

    Securities

    On March 11, the SEC announced that it awarded a whistleblower nearly $14 million for exposing ongoing fraud by publishing on online report. According to the redacted order, the whistleblower voluntarily provided original information and prompted the opening of an investigation, which resulted in a successful enforcement action against the company and its CEO and the return of millions of dollars to harmed investors.

    The SEC has awarded approximately $1.2 billion to 249 individuals since issuing its first award in 2012.

    Securities SEC Enforcement Whistleblower Investigations

  • CFTC awards $500,000 to whistleblowers

    Securities

    On March 10, the CFTC announced awards totaling approximately $500,000 to two whistleblowers who “separately provided significant information and substantial assistance” that led to a successful Commodity Exchange Act enforcement action. The associated order noted that the claimants voluntarily provided original information, which began an underlying investigation and “significantly contributed to the success” of the enforcement action.

    The CFTC has awarded approximately $300 million to whistleblowers since the enactment of its Whistleblower Program under Dodd-Frank, and whistleblower information has led to nearly $3 billion in monetary relief.

    Securities Enforcement CFTC Commodity Exchange Act Whistleblower

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