On Thursday, January 7, The U.S. Securities and Exchange Commission (SEC) announced three whistleblower awards to five recipients that totaled more than $1.1 million.
According to a statement released by the agency, each of the whistleblowers provided high-quality, unique information that led to multiple enforcement actions.
The first award totaled approximately $500,000 and went to three whistleblowers who uncovered fraud and submitted tips to the SEC that prompted an investigation. Each of these whistleblowers had formerly served on the staff of the company committing the fraud.
The second award was $600,000 that went to a single whistleblower who provided the SEC with information that led to a fraud investigation. The whistleblower had repeatedly reported the fraud internally before contacting the SEC.
The third award was approximately $100,000 and went to a whistleblower who personally analyzed fraud occurring at a company using publicly available documents, then reported their findings to the SEC to prompt an investigation.
Total SEC whistleblower awards have exceeded more than $730 million since the inception of the program in 2012, with 133 total whistleblowers receiving payouts for their assistance. Whistleblowers who file for awards are able to remain complexly anonymous. Any confidential information that could potentially identify the whistleblower is redacted in public reports.
People who file for whistleblower awards can receive anywhere from 10 to 30 percent of the sanctions collected from successful enforcement actions. Larger payouts tend to be reserved for whistleblowers who provide unique, timely information that prompted a new investigation, and they can be further rewarded if they attempt to report the wrongdoing internally before going to the SEC.
For more information about filing a whistleblower claim with the SEC, contact an experienced attorney at Kardell Law Group.