SEC Awards Whistleblower More Than $37 Million

July 26, 2024 2:01 PM EDT | Source: Newsfile SEC Press Digest^[1]

Washington, D.C.--(Newsfile Corp. - July 26, 2024) - The Securities and Exchange Commission today announced an award of more than $37 million to a whistleblower whose information and assistance led to a successful SEC enforcement action.

The whistleblower persisted in reporting the misconduct internally, which led the employer to conduct its own investigation and eventually report the results to the Commission. This self-report caused the Commission to open an investigation. Further, without the whistleblower's ongoing, extensive, and timely assistance, the staff would not have learned the full context and extent of the employer's misconduct. 

“Today’s whistleblower learned of misconduct and made the difficult decision to report their concerns. This individual, who was retaliated against for their whistleblowing activity, played a crucial role in the ultimate success of the enforcement proceeding,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower.

Payments to whistleblowers are made out of an investor protection fund, established by Congress, which is financed entirely through monetary sanctions paid to the SEC by securities law violators. 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 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 any 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^[2].

SOURCE: Newsfile SEC Press Digest^[3]

References

1. ^{^} Newsfile SEC Press Digest (www.newsfilecorp.com)
2. ^{^} www.sec.gov/whistleblower (api.newsfilecorp.com)
3. ^{^} Newsfile SEC Press Digest (www.newsfilecorp.com)