The SEC whistleblower program achieved a significant milestone at the beginning of September when it surpassed a total of $1 billion in awards.
The agency announced this first whistleblower award in 2012, and since that time has seen steady increases in the amount of money it provides in awards to whistleblowers.
As of early September, 207 individuals have received whistleblower awards paid out of an investor protection fund established by Congress. The funds that go toward these whistleblowers are entirely financed by monetary sanctions paid to the SEC, with not a single dollar taken or withheld from the harmed investors to pay out these awards.
The threshold was passed in part due to a $110 million award, the second-highest award in the program’s history. The award went to a person who provided major independent analysis that enhanced the SEC’s ability to investigate a securities issue and reach a successful enforcement action.
Whistleblowers are eligible for an award if they voluntarily offer the SEC original, credible and timely information that results in a successful enforcement action against a securities law violator. They can receive anywhere from 10 to 30 percent of the money paid out in sanctions exceeding $1 million, with the specific amount they receive hinging on the degree to which their actions aided investigators.
The SEC never reports the identify of whistleblowers, or any information that could result in the identity of the whistleblower being compromised.
There are specific protocols whistleblowers must follow when submitting clams to the SEC. To ensure you follow all of these protocols and do not threaten your ability to recover compensation after enforcement actions, work with an experienced whistleblower attorney at Kardell Law Group. This will ensure you get through the process smoothly and efficiently.