SEC Awards More Than $3 Million to Whistleblowers in Two Enforcement Actions

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Washington D.C.–(Newsfile Corp. – April 23, 2021) – The Securities and Exchange Commission today announced awards totaling more than $3 million to two whistleblowers in separate enforcement proceedings.

In the first order, the SEC awarded approximately $3.2 million to a whistleblower who alerted SEC staff to violations, identified key issues for staff to focus on, and provided subject matter expertise to the staff that conserved SEC resources.

In the second order, the SEC awarded a whistleblower more than $100,000 for significant information and ongoing assistance.  The whistleblower’s information and cooperation helped the SEC detect and stop an ongoing fraud preying on investors.

“These whistleblowers provided new, important information that aided the SEC in learning about and understanding the violative conduct,” said Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower.  “The continuing assistance and cooperation offered by whistleblowers can prove critical to the successful resolution of an enforcement action.”

The SEC has awarded approximately $816 million to 153 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 a successful enforcement action.  Whistleblower awards can range from 10 percent to 30 percent 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 any information that could reveal a whistleblower’s identity.

For more information about the whistleblower program and how to report a tip, visit www.sec.gov/whistleblower.

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