Thursday, May 27, 2021

SEC Awards More Than $4 Million to Whistleblower

The SEC has announced an award of more than $4 million to a whistleblower who alerted SEC staff to certain violations, prompting the opening of an investigation.  The whistleblower who alerted SEC staff to certain violations, prompting the opening of an investigation.  The whistleblower then provided substantial assistance by meeting with SEC staff, identifying key players, and providing additional helpful information and documents.

“Whistleblowers may be uniquely positioned to provide the kind of information and assistance that can prove instrumental to the successful resolution of an enforcement action,” said Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower.  “Whistleblowers play a critical role in helping the SEC detect securities laws violations and better protect investors.”   

The SEC has now awarded approximately $905 million to 164 individuals since issuing its first award in 2012. All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards. Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to successful enforcement action. Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million.

Sallah Astarita & Cox, LLC represents whistleblowers across the country. To schedule a call with one of their attorneys call 212-509-6544

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Have a securities law question? Call Sallah Astarita & Cox at 212-509-6544.