The SEC announced a $12 million award to be split among three joint whistleblowers who provided critical information and assistance in an enforcement action by the agency.
The whistleblowers offered key information and “extensive cooperation,” which helped expand the scope of the investigation and the charges filed in the enforcement action, and also saved the agency significant time and resources, according to the regulator’s statement. The individuals met numerous times with the SEC’s enforcement staff, and some faced hardships due to their reporting.
“The whistleblowers played a key role in helping the SEC hold wrongdoers accountable,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower, adding that “even when an investigation is already underway, whistleblowers can contribute by providing new information on misconduct.”
Whistleblower payments are made through an investor protection fund, established by Congress, which is entirely financed through monetary penalties paid to the SEC by violators of securities laws.
Under the law, whistleblowers may be eligible for a reward 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 to 30 percent of the money collected when monetary sanctions exceed one million dollars.
As established by the Dodd-Frank Act, the SEC protects whistleblower confidentiality and does not disclose any information that could reveal their identity.
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