The Securities and Exchange Commission (SEC) has reported that it has awarded more than $12 million to two whistleblowers.
“SEC awards more than $12 million to two whistleblowers who provided information and assistance in successful SEC enforcement actions”, said the government agency on Twitter.
According to the agency, the first whistleblower prompted the opening of the investigation and provided information on violations that would otherwise have been difficult to detect.
This whistleblower identified key witnesses, helped staff understand complex fact patterns and issues, and made persistent efforts to remedy the issues.
As a result, this whistleblower will receive an award of more than $9 million.
The second whistleblower submitted important new information during the course of the investigation and will receive an award of more than $3 million.
“Whistleblowers play a critical role in helping the SEC detect and prosecute wrongdoing and in protecting investors and the capital markets,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower.
“The information and assistance provided by these two whistleblowers in helping to identify complex wrongdoing demonstrates the importance of the whistleblower program to the SEC’s enforcement efforts.”
What Were the Violations?
The SEC did not provide any further information or details about the violations, other than the agency had awarded more than $12 million to the whistleblowers.
According to the SEC, payments to whistleblowers are made out of a Congressionally-established investor protection fund, which 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 monetary sanctions exceed $1 million.
The Securities and Exchange Commission has awarded more than $1 billion to whistleblowers since the inception of the agency’s whistleblower program in 2011.
The largest amount a whistleblower has received is $114 million, which was issued on October 22nd, 2020.
Related: Congressman Introduces Legislation to Fire Gary Gensler
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Whistleblowers getting $12million sounds like a crock of shit.. that’s what I think lot of money moving around and they have meme stock holders hostage how long are investors gonna take this BS going on
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Useless and corrupt Gary Gensler has done nothing whatsoever to stop the corruption especially when it comes to naked Short selling, dark pool abuse, etc. So why do whistleblowers matter because Gensler won’t do anything about the crime! He’s obviously paid off by Ken Griffin to look the other way. Unfortunately this article is a waste!