The U.S. Securities and Exchange Commission (SEC) issued a $600,000 whistleblower award on Tuesday, February 22 to an individual who voluntarily submitted unique, credible information to the agency that led to a successful high-value enforcement action.
As is the case with all SEC awards, the agency did not release any information about the whistleblower or the case to protect their privacy and identity.
Under the SEC’s whistleblower program, qualified whistleblowers who contribute unique information to an enforcement action that results in at least $1 million in sanctions can recover awards of 10 to 30 percent of the funds collected.
There are multiple factors that go into determining what percent of the award the whistleblower will receive. This includes the uniqueness of the information, the timeliness with which the whistleblower provided the information, whether the whistleblower was culpable at all in the securities violation, whether the whistleblower provided ongoing assistance and any additional actions the whistleblower took that went above and beyond what is expected of them.
Since the new fiscal year began on October 1, the SEC has already awarded more than $100 million to more than 30 individual whistleblowers. This comes after a 2021 fiscal year that saw a record number of tips, awards and award amounts.
The SEC’s whistleblower program continues to be a major success, in large part due to the bravery of the whistleblowers who come forward with the information they have.
If you believe you qualify for a whistleblower award from the SEC, contact an experienced whistleblower lawyer at Kardell Law Group to begin your case.