The U.S. Securities and Exchange Commission (SEC) announced an award of $2.6 million shared among five individuals who assisted the agency with three separate enforcement proceedings.
One whistleblower received $1.2 million from the SEC for providing crucial independent analysis based on an algorithm they developed and applied to public data. This assistance from the whistleblower aided the SEC in enforcement and saved significant staff time and resources. The whistleblower also assisted during settlement negotiations for the enforcement action.
Three more whistleblowers shared just over $1 million. The information they provided led to a successful enforcement action, and all three of the whistleblowers held compliance roles at the same company. They were eligible for the award because they submitted their information more than 120 days after reporting the alleged conduct internally. One of the three received a larger settlement for going above and beyond in providing comprehensive information that was crucial to the SEC’s ability to enforce.
Finally, a fifth whistleblower received more than $350,000 for assisting with independent analysis that led to an enforcement action. The individual assisted the regulator over a number of years, and identified patterns among publicly available data that allowed the SEC to identify and prevent wrongdoing.
After these awards were issued, the SEC’s whistleblower program had passed out more than $959 million to 203 individuals since first issuing an award in 2012. The program has been a significant success in encouraging people to come forward with any information they have about potential wrongdoing.
All payments made through the program come from monetary sanctions of securities law violations, meaning no taxpayer dollars go to pay for the awards.
As is the case with all SEC whistleblower awards, the agency did not disclose any information hat could reveal the whistleblowers’ identities.
For more information about filing a whistleblower claim with the SEC, contact an experienced whistleblower lawyer at Kardell Law Group.