The SEC recently announced whistleblower awards totaling about $22 million. The awards were made to two whistleblowers who gave critical information and help to the SEC with regard to successful enforcement actions brought against a financial services firm.
The first whistleblower received an $18 million award, and the second whistleblower received a $4 million award. The larger award acknowledges that the first whistleblower was the original source of the investigation, while the second whistleblower provided help later on, after the investigation began.
Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower, stated: “This case demonstrates once again the value of the whistleblower program in helping to protect investors, and the Commission’s continued commitment to rewarding individuals who provide high-quality tips. The reporting of credible information by these whistleblowers and their subsequent cooperation with the staff’s investigation allowed the Commission to better understand complex transactions related to the matters under investigation.”
When a whistleblower voluntarily gives the SEC original 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 laws violators. These awards are paid from an investor protection fund that is funded solely by penalties and fines paid to the SEC.
The SEC has awarded approximately $838 million to 156 individuals since issuing its first whistleblower award in 2012.
We are here to help tipsters with the whistleblower process. Please contact one of our Business Trial Group attorneys at 888-871-0783 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.