SEC Issues Awards Totaling $98 Million to Two Whistleblowers

The SEC‘s Landmark Whistleblower Awards

The Securities and Exchange Commission (SEC) recently made headlines by awarding over $98 million to two whistleblowers whose information and cooperation led to significant enforcement actions. These payouts demonstrate whistleblowers’ crucial role in upholding financial markets’ integrity.

Whistleblower Information Sparks Major Investigations

The SEC’s investigations were initiated by a timely tip from the first whistleblower. This individual not only provided the initial information but also offered ongoing assistance and critical additional insights. As a result of their substantial contribution, the SEC has granted the whistleblower an $82 million award.

Impact of the Second Whistleblower

Although the second whistleblower came forward later in the process, their information was pivotal in addressing a specific aspect of the enforcement actions. This whistleblower will receive a $16 million award for their valuable input.

The Vital Role of Whistleblowers in SEC Enforcement

Creola Kelly, Chief of the SEC’s Office of the Whistleblower, emphasized the importance of whistleblower cooperation in the agency’s enforcement efforts. “Whistleblower information and cooperation play an integral role in the SEC’s enforcement efforts,” Kelly stated. She further noted that without the insights provided by these whistleblowers, detecting the violations would have been a much more challenging task.

Funding Whistleblower Awards Through the Investor Protection Fund

Whistleblower awards are financed through an investor protection fund established by Congress. The fund is sustained solely by monetary sanctions imposed on securities law violators. Whistleblowers who provide the SEC with original, timely, and credible information that leads to successful enforcement actions are eligible for awards ranging from 10% to 30% of the total monetary sanctions, provided that the sanctions exceed $1 million.

Ensuring Confidentiality for Whistleblowers

The SEC is committed to maintaining the confidentiality of whistleblowers, as mandated by the Dodd-Frank Act. The agency does not disclose any information that could potentially reveal a whistleblower’s identity, ensuring that these crucial informants are protected.

For more details on the whistleblower program and how to report a tip, visit the SEC’s official whistleblower page. Whistleblowers who are represented by experienced SEC Whistleblowers typically get a better result than those without representation. Contact Sallah Astarita & Cox, LLC  for a free consultation and information about contingent fee arrangements.

SEC Press Release

Sallah Astarita & Cox has successfully represented clients in presenting their information and obtaining an award, all without any upfront costs or fees to the client. If you think you have information that could lead to a claim, call the firm at 212-509-6544 to speak to a whistleblower attorney.

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