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SEC Issues $22 Million Award to Pair of Whistleblowers

The U.S. Securities and Exchange Commission recently announced a pair of awards of approximately $22 million to two whistleblowers who brought forth information to the SEC that was crucial in enabling successful enforcement actions.

The whistleblowers in question also provided substantial additional assistance to the Commission in its efforts to take action against a financial services firm engaged in wrongdoing.

The first whistleblower received an $18 million award, and the second a $4 million award. The first whistleblower received the larger award because they were the first source of the information that prompted the investigation. The second whistleblower submitted information while the investigation was already underway, but their information was still of great significance to investigators.

Update on the SEC whistleblower program

The SEC’s whistleblower program continues to be a major difference maker in federal enforcement of securities laws. Since the program issued its first award in 2012, the Commission has awarded 156 individuals with approximately $838 million. All of the payments made to whistleblowers are financed fully through the sanctions paid to the SEC by violators of securities laws, and no money is ever taken or withheld from harmed investors.

There is a chance the whistleblower program could yet surpass the billion dollar total in 2021, which would be a staggering milestone and a strong statement of its success.

Whistleblowers are eligible for these awards when they provide the SEC with original, timely information that helps investigators bring successful enforcement actions. The awards can be anywhere from 10 to 30 percent of the money collected when sanctions exceed $1 million.

For more information about the SEC whistleblower program and how you can submit a tip, contact an experienced whistleblower lawyer at Kardell Law Group.

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