On November 30, the U.S. Securities and Exchange Commission (SEC) Office of the Whistleblower announced a new award of more than $16 million paid to two whistleblowers. Each received an award of more than $8 million.
According to the limited information released by the SEC, the first whistleblower provided the agency with original, important insights, including the identity of key witnesses and documents. This information ultimately became the foundation for the SEC’s investigation into the wrongdoing and the subsequent action taken against the company.
The second whistleblower reportedly gave the SEC original information and other submissions that helped the agency “more fully and quickly understand” the nature and extent of the misconduct and assess the appropriate legal consequences.
With this award, the total amount of financial remedies that have been levied against wrongdoers in SEC cases started by whistleblowers has now surpassed $1 billion. The SEC has now awarded more than $175 million to 49 whistleblowers in total since it first began its whistleblower program in 2012.
The SEC welcomes reports from whistleblowers that provide unique and actionable information regarding wrongdoing on the part of a business or organization. SEC whistleblowers stand to earn significant amounts of money in compensation if the information they provide leads to enforcement actions worth $1 million or more. Depending on the circumstances, whistleblowers could earn 10 to 30 percent of the total value of the enforcement action.
For more information on how to submit a tip to the SEC’s Office of the Whistleblower and the federal protections in place for those who accurately expose wrongdoing, speak with an experienced Dallas lawyer at Whistleblower Law for Managers.