Whistleblower tip

Awards Totaling More Than $15 Million to Two Whistleblowers

The Securities and Exchange Commission today announced awards of more than $12.5 million and $2.5 million to two whistleblowers whose information and assistance led to a successful SEC enforcement action.

The first whistleblower alerted Commission staff to a fraudulent scheme and prompted the opening of an investigation. The second whistleblower’s information was more limited but also helped lead to the success of the enforcement action.

“These whistleblowers provided critical information and substantial assistance to the Commission staff in the underlying investigation,” said Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower. “These awards demonstrate the SEC’s commitment to rewarding whistleblowers who provide high-quality tips that help protect investors.”

The SEC has awarded approximately $1.1 billion to 226 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 10-30% 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 any information that could reveal a whistleblower’s identity.

Whistleblowers who have the assistance of an experienced securities attorney have a better chance for obtaining an award. For more information about the whistleblower program and to report a tip visit The Securities Lawyer or call them at 212-509-6544

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Securities Attorney at Sallah Astarita & Cox | 212-509-6544 | mja@sallahlaw.com | Website | + posts

Mark Astarita is a nationally recognized securities attorney, who represents investors, financial professionals and firms in securities litigation, arbitration and regulatory matters, including SEC and FINRA investigations and enforcement proceedings.

He is a partner in the national securities law firm Sallah Astarita & Cox, LLC, and the founder of The Securities Law Home Page - SECLaw.com, which was one of the first legal topic sites on the Internet. It went online in 1995 and is updated daily with news, commentary and securities law related links.

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