Articles Posted in Whistleblower

The Securities and Exchange Commission (“SEC”) announced a whistleblower award of roughly $36 million to a whistleblower that provided information to the SEC on an illegal scheme. The information led to successful regulatory enforcement actions by the SEC and another federal agency.

In total, $161 million has been awarded to whistleblowers this month.  On September 17, 2021, the SEC announced an award of $11.5 million to two whistleblowers.  On September 15, 2021, the SEC announced two awards totaling $114 million.  That award marked a milestone for the SEC’s 10-year-old whistleblower program, as it put the total amount of awards issued to over $1 billion.

In total, the SEC has awarded over $1.1 billion to 214 individuals since the whistleblower program became effective in August 2011. The awards are paid out of an investor protection fund established by Congress financed entirely through monetary sanctions paid to the SEC by securities law violators. Money is not taken or withheld from harmed investors to pay whistleblower awards.

On September 15, 2021, the Securities and Exchange Commission (“SEC”) announced whistleblower awards of roughly $110 million and $4 million to two whistleblowers.   With these awards, the SEC has issued more than $1 billion to 207 whistleblowers, ten years after the SECs Whistleblower Program became effective.  The program has issued a whopping $500 million in the fiscal year 2021 alone.

In the SEC’s press release, SEC Chair Gary Gensler issued the following statement:

“Today’s announcement underscores the important role that whistleblowers play in helping the SEC detect, investigate, and prosecute potential violations of the securities laws. The assistance that whistleblowers provide is crucial to the SEC’s ability to enforce the rules of the road for our capital markets.

On August 27, 2021, the Securities and Exchange Commission (“SEC”) announced whistleblower awards of roughly $2.6 million to five whistleblowers in three separate regulatory enforcement proceedings.  In total, over $16 million has been awarded to SEC whistleblowers this month.

In the first regulatory enforcement proceeding, a whistleblower was awarded approximately $1.2 million for providing the regulator with independent analysis based upon a complex algorithm the whistleblower developed and applied to publicly available data.  The information was valuable to the SEC and saved the agency time and resources.

In the second SEC enforcement proceeding, more than $1 million was awarded to three compliance personnel whose information led to a successful regulatory enforcement action.   The whistleblower that received the highest award provided “extraordinary assistance and comprehensive information,” according to the SEC’s press release.

On August 10, 2021, the Securities and Exchange Commission (“SEC”) announced whistleblower awards of nearly $6 million to two whistleblowers who provided information and assistance to the SEC in separate enforcement proceedings.  The latest awards come after the SEC revealed on August 6, 2021, an award of more than $3.5 million to three individuals in two separate proceedings.

In the first enforcement proceeding (announced on August 10, 2021), a whistleblower was awarded more than $3.5 million for providing the regulator with valuable new information that resulted in the expansion of an existing investigation into a new geographic area.  The whistleblower also provided additional information and assistance to help the agency bring charges in the underlying enforcement action.

In the second enforcement proceeding (announced on August 10, 2021), a whistleblower was awarded more than $2.4 million for providing the SEC with a tip that promoted an investigation.  The whistleblower also provided the SEC with documents and identified potential witnesses.

On August 2, 2021, the Securities and Exchange Commission (“SEC”) announced whistleblower awards of more than $4 million to four whistleblowers who provided information and assistance to the SEC in two separate enforcement proceedings.

In the first enforcement proceeding, a whistleblower was awarded more than $2 million for providing the regulator with information that launched an investigation.  The informant also provided the SEC with ongoing assistance by participating in interviews and identifying key individuals and entities.  Another whistleblower was issued an award of $150,000 for providing the SEC with information that resulted in an expansion of the investigation.

In the second enforcement action, the SEC awarded more than $1.6 million to two whistleblowers.  The first individual provided the SEC with information that alerted the SEC to the violations and was awarded $1.1 million. The second whistleblower was awarded $500,000 for providing significant and timely information.

On July 21, 2021, the Securities and Exchange Commission (“SEC”) announced an award of nearly $3 million to a whistleblower who alerted the SEC to previously unknown conduct that led to a successful SEC enforcement action.  According to Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower, the whistleblower “provided substantial additional assistance” to the SEC, which resulted in the SEC saving a “considerable amount of SEC resources.”

In total, the SEC has awarded over $942 million to 186 individuals since the whistleblower program became effective in August 2011. The awards are paid out of an investor protection fund established by Congress financed entirely through monetary sanctions paid to the SEC by securities law violators. Money is not taken or withheld from harmed investors to pay whistleblower awards.

Congress established the whistleblower program to incentivize whistleblowers with specific, timely, and credible information about federal securities law violations to report to the SEC.  A whistleblower may receive an award if they voluntarily provide the SEC with qualifying information, leading to successful enforcement. The award can range from 10 percent to 30 percent of the money collected due to the enforcement action.

On July 15, 2021, the Securities and Exchange Commission (“SEC”) announced an award of more than $1 million to a whistleblower.  According to Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower, the whistleblower “played a crucial role” by providing the SEC with valuable information and ongoing assistance.

In 2021, the SEC has now awarded over $200 million to whistleblowers. Since the whistleblower program became effective in August 2011, the SEC has awarded over $939 million to 182 individuals.  The awards are paid out of an investor protection fund established by Congress financed entirely through monetary sanctions paid to the SEC by securities law violators. Money is not taken or withheld from harmed investors to pay whistleblower awards.

Congress established the whistleblower program to incentivize whistleblowers with specific, timely, and credible information about federal securities law violations to report to the SEC.  A whistleblower may receive an award if they voluntarily provide the SEC with qualifying information, leading to successful enforcement. The award can range from 10 percent to 30 percent of the money collected due to the enforcement action.

During the week of January 21, 2021, the Securities and Exchange Commission (“SEC”) awarded approximately $6.3 million to five whistleblowers.

First, on June 21, 2021, the SEC announced awards of nearly $4 million to an informant whose information led to the initiation of an SEC investigation that resulted in a successful enforcement action.  According to the SEC’s press release, the whistleblower provided extraordinary assistance, participating in hours of telephonic interviews and communicating dozens of times with investigative staff. The whistleblower also identified key witnesses and provided documents to the staff.

Also, on June 21, 2021, the SEC awarded approximately $1.3 million to three whistleblowers who provided the SEC with information that prompted the opening of an investigation.

On June 14, 2021, the Securities and Exchange Commission (“SEC”) revealed a total award of approximately $3 million to two whistleblowers.  According to the SEC’s press release, the whistleblowers separately and independently provided the SEC with valuable information and ongoing assistance, which included participating in multiple interviews and providing helpful documents.  The whistleblowers’ assistance led to a successful SEC enforcement action.

In total, the SEC has awarded around $932 million to 172 individuals since the whistleblower program became effective in August 2011. All awards are paid 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.

Congress established the whistleblower program to incentivize whistleblowers with specific, timely, and credible information about federal securities law violations to report to the SEC.  A whistleblower may receive an award if they voluntarily provide the SEC with qualifying information, leading to successful enforcement. The award can range from 10 percent to 30 percent of the money collected due to the enforcement action.

The Securities and Exchange Commission (“SEC”) began the month of June 2021 by announcing awards of approximately $13 million and $10 million to two whistleblowers whose whistleblower tips led to successful SEC enforcement actions and related actions.  In addition to the initial tips, the whistleblowers also provided the SEC and another federal agency with substantial assistance by submitted information and documents, participating in interviews, and identifying key individuals who engaged in the misconduct at issue.

According to Emily Pasquinelli, the Acting Chief of the SEC’s Office of the Whistleblower, the “whistleblowers’ information and assistance led to multiple successful enforcement actions related to a complex and fraudulent scheme involving multiple individuals and tens of millions of dollars in ill-gotten gains.”

In total, the SEC has awarded over $928 million to 166 individuals since the whistleblower program became effective in August 2011. All awards are paid 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.

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