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.
Market News Published Daily
For stock market, business news and updates, join the newsletter to receive weekly market news and notifications straight to your inbox.
Franknez.com is the media site that keeps retail investors informed.
- Gain access to EXCLUSIVE FrankNez articles you won’t find here.
- Become part of a private and safe Discord community, just for retail investors.
- Get drawn at the end of the year for holiday giveaways.
Recommended For You ✨
- A US Bank is Now Denying Customers Access to Money
- Florida Now Has Massive Departures As Hundreds of Thousands Leave
- The US Treasury Direct is Now Freezing Customer Accounts
- A Massive Bank Now Closes Several Branches in Florida
- California Now Has Massive Departures As Hundreds of Thousands Leave
- Chase Customers Now Unable to Access Money Through ATMs