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.
SEC Director of Enforcement added the following comments:
“The whistleblower program has been instrumental to the success of numerous enforcement actions since it was instituted a decade ago. We hope that today’s announcement encourages whistleblowers to continue to come forward with credible information about potential violations of the securities laws.”
Whistleblowers play an important role in fighting corruption, protecting retail investors, and maintaining a free and healthy market. Iorio Altamirano LLP, an investor advocate law firm, is committed to the effective representation of whistleblowers.
Individuals who have information regarding fraud or other violations of federal securities laws should contact whistleblower law firm Iorio Altamirano LLP for a free consultation to review your legal rights on how to file a whistleblower tip to the SEC and preserve eligibility to receive a whistleblower award.
The $110 million award is the second-largest award in the SEC’s whistleblower program’s history and was issued 11 months after the SEC awarded its largest award of $114 million to a whistleblower. The $110 million award consists of an award of about $40 million connected with an SEC enforcement action and an award of approximately $70 million related to actions of another federal government agency. The whistleblower provided the SEC with significant independent analysis that substantially advanced both enforcement investigations.
In total, the SEC has awarded over $1 billion to 207 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.
Whistleblower law firm Iorio Altamirano LLP is committed to the effective representation of whistleblowers. Individuals with credible information regarding fraud or other violations of federal securities laws should contact Iorio Altamirano LLP to review their legal rights.