Wednesday, June 2, 2021

SEC Awards More Than $23 Million to Whistleblowers

The SEC announced awards of approximately $13 million and $10 million to two whistleblowers whose information and assistance led to successful SEC and related actions.  

The whistleblowers’ substantial assistance, provided to the SEC and another federal agency, included submitting information and documents, participating in interviews, and identifying key individuals who engaged in the misconduct at issue.

“The whistleblowers’ information and assistance led to multiple successful enforcement actions related to a complex and fraudulent scheme involving multiple individuals and tens of millions of dollars in ill-gotten gains,” said Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower. “Today’s awards demonstrate the SEC’s continuing commitment to making awards to individuals who provide high-quality information that assists the SEC and other government agencies in bringing successful enforcement actions.”

The SEC’s whistleblower program was created to incentivize individuals to report high-quality tips to the Commission and assist the agency in its efforts to combat wrongdoing and, as a result, better protect investors and the marketplace. Since the program’s inception ten years ago, whistleblowers have made a significant impact on the Commission’s enforcement efforts and protection of investors. Original information provided by whistleblowers has led to enforcement actions in which the Commission has obtained over $2.5 billion in financial remedies, most of which has been, or is scheduled to be, returned to harmed investors.

Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action. Whistleblower awards can range from 10-30% of the money collected when the monetary sanctions exceed $1 million.

As set forth in the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers and does not disclose information that could reveal a whistleblower's identity.

Sallah Astarita & Cox a national securities law firm consisting of broker-dealer and former SEC Attorneys represents SEC whistleblowers across the country. To discuss a potential case with one of their attorneys call 212-509-6544

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