SEC Awards $114 Million Whistleblower Award
The SEC recently announced a $114 million whistleblower award to a person who provided information that resulted in a successful enforcement action. The $114 million award is a record for the whistleblower program by a long shot – it is more than double the next highest award of $50 million made in June 2020.
SEC Chairman Jay Clayton stated: “Today’s milestone award is a testament to the Commission’s commitment to award whistleblowers who provide the agency with high-quality information. 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.”
Jane Norberg, Chief of the SEC’s Office of the Whistleblower, said: “The actions of the whistleblower awarded today 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.”
When a whistleblower voluntarily gives the SEC original, timely, and credible information that results in a successful enforcement action, he or she may receive an award under the SEC’s whistleblower program. Whistleblower awards range from 10 to 30 percent of the sanctions collected from the securities violator.
The SEC has awarded over $675 million to 108 people since announcing its first award in 2012. These awards are paid from an investor protection fund that is funded solely by penalties and fines that securities laws violators pay to the SEC.
We are here to help tipsters with the whistleblower process. Please contact one of our Business Trial Group attorneys at 888-874-9075 or online if you have information of securities-related fraud that you believe the SEC (or other agencies, like the CFTC) may be interested in prosecuting.
The Business Trial Group is part of the largest contingency law firm in the nation, with more than 600 lawyers and 50 offices. We regularly battle against brokerage firms, investment advisory firms, and banks, and have helped investors recover tens of millions of dollars of investment losses.
The Business Trial Group at Morgan & Morgan will never charge hourly fees or expensive retainers. We are only paid if we successfully recover money for you.