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SEC Issues $3 Million Joint Award to Pair of Whistleblowers

The U.S. Securities and Exchange Commission (SEC) recently announced an award of $3 million to be split between a pair of whistleblowers who provided the federal agency with information that prompted an investigation and successful enforcement action. The tip had to do with securities law violations that impacted retail investors. Because the whistleblowers submitted the tip jointly, they will share the award.

The SEC also noted that in this particular case, the whistleblowers took some “significant and timely steps” to have their employer resolve the harm that was caused by the violations, reporting internally before going to the SEC. The information they provided was critical in helping the SEC bring the enforcement action to fruition.

Adding to the list of SEC awards

This pair of awards brought the SEC to a total of more than $384 million paid out to 64 whistleblowers through the whistleblower program since the first award was issued in 2012. All payments made to whistleblowers as part of the program come from a percentage of the money gained from sanctions handed down in enforcement actions.

Whistleblowers are eligible to recover compensation when they offer the SEC original, timely and credible information on securities law violations, and if that information they provide leads to a successful enforcement action. When the sanctions exceed $1 million in value, the awards can range from 10 to 30 percent of the money, depending on the circumstances of the case and the value of the provided information.

The SEC also takes great steps to protect the confidentiality of all whistleblowers who report to it, not releasing any information that could expose their identity.

To learn more about the SEC whistleblower program and how to file a claim, meet with an experienced attorney at Kardell Law Group.

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  • "Reaching out to Steve Kardell was the best decision I made. His ability to provide immediate insight and direction was very powerful, and a huge relief during a very stressful time period. For anyone struggling with a whistleblower situation, I would highly recommend at least speaking with Steve. After a 10 minute call with him, I had a better understanding of what I was dealing with. Even better, he gave me some immediate hope. In the end Steve did a better job than I thought was possible. Steve was able to get in contact with people in my organization, that I didn’t have access to. Because of his years of experience, he already has contacts in many organizations in Dallas. The entire situation was handled peacefully. I was impressed by his ability to “keep the peace”–rather than creating a battle with the organization. The reason I didn’t reach out to a lawyer initially, was because I thought it would mean an immediate end to any hope of a positive relationship with the company. Steve was able to address my concerns, and in the end I was able to continue to work for them."  -KS

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