The SEC has issued the largest-ever whistleblower money award for an amount of nearly $279 million.
The Securites and Exchange Commission announced on Friday the agency had awarded nearly $279 million to a whistleblower whose information and assistance led to the successful enforcement of SEC and related actions.
This is the highest award in the SEC’s whistleblower program’s history, more than doubling the $114 million whistleblower award the SEC issued in October 2020.
“The size of today’s award – the highest in our program’s history – not only incentivizes whistleblowers to come forward with accurate information about potential securities law violations, but also reflects the tremendous success of our whistleblower program,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement.
“This success directly benefits investors, as whistleblower tips have contributed to enforcement actions resulting in orders requiring bad actors to disgorge more than $4 billion in ill-gotten gains and interest.
As this award shows, there is a significant incentive for whistleblowers to come forward with accurate information about potential securities law violations.”
“The whistleblower’s sustained assistance including multiple interviews and written submissions was critical to the success of these actions,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower.
“While the whistleblower’s information did not prompt the opening of the Commission’s investigation, their information expanded the scope of misconduct charged.”
SEC Awards $12 Million to Whistleblowers in April
In April, 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.”
Related: Bankers Urge the SEC to Look into Manipulative Trading
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