Washington D.C., Sept. 17, 2020 —
The Securities and Exchange Commission today announced an award of nearly $250,000 to joint whistleblowers whose tip caused the opening of an investigation that resulted in a successful enforcement action. The whistleblowers raised concerns internally before reporting the concerns to the Commission.
“The whistleblowers’ information alerted Commission staff to the potential securities violations and prompted the staff to open an investigation,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “While the case was largely built through the investigative efforts of the Commission staff, this award highlights the importance of receiving that initial tip that can break open the case.”
The SEC has awarded approximately $521 million to 96 individuals since issuing its first award in 2012. Including today’s award, the SEC has made whistleblower awards to 29 individuals during this fiscal year – the highest in any fiscal year to date. 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 percent to 30 percent 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 information that could reveal a whistleblower’s identity.
For more information about the whistleblower program and how to report a tip, visit www.sec.gov/whistleblower.