SEC Announces Record $114 Million Whistleblower Award
By Attorney Jared Levy
The Securities and Exhange Commission announced a $114 million whistleblower award to someone who provided information that resulted in a successful enforcement action. This is a record for the whistleblower program. It is more than double the next highest award of $50 million made in June 2020.
According to Jane Norberg, chief of the SEC’s Office of the Whistleblower, the actions of the whistleblower awarded were extraordinary.
"After repeatedly reporting concerns internally, and despite personal and professional hardships, the whistleblower alerted the SEC and the other agency of the wrongdoing and provided substantial, ongoing assistance that proved critical to the success of the actions,” Norberg said in a statement.
The milestone award is a testament to the SEC’s commitment to award whistleblowers who provide the agency with high-quality information, according to SEC Chairman Jay Clayton.
"Whistleblowers make important contributions to the enforcement of securities laws and we are committed to getting more money to whistleblowers as quickly and as efficiently as possible,” Clayton said in a statement.
Under the SEC’s whistleblower program, a whistleblower may receive an award when he or she voluntarily gives the SEC credible information that results in a successful enforcement action. The awards given to whistleblowers range from 10 to 30 percent of the sanctions collected from the securities violator.
More than $675 million has been awarded to 108 whistleblowers since the SEC announced its first award in 2012. These awards are paid from an investor protection fund that is funded solely by penalties and fines that violators pay to the SEC.
The securities attorneys at the Business Trial Group are here to help tipsters with the whistleblower process. Contact one of our attorneys at 888.744.0142 or online if you have information related to securities fraud that you believe the SEC or other agencies may be interested in prosecuting.
Our experienced securities attorneys are part of the largest contingency law firm in the nation, with more than 700 lawyers and offices nationwide. This means we will never charge you hourly fees or expensive retainers. We are only paid if we successfully recover money for you.