SEC awards $50 million to one individual this week, its largest award to date.
According to a press release on June 4, 2020, the Securities and Exchange Commission (SEC) announced a nearly $50 million whistleblower award to an individual who provided detailed, firsthand observations of misconduct by a company, which reportedly “resulted in a successful enforcement action that returned a significant amount of money to harmed investors.”
This is the largest amount ever awarded to one individual under the SEC’s whistleblower program. The second largest award was for $39 million to an individual in 2018. Two individuals also reportedly shared a nearly $50 million whistleblower award that same year.
According to the regulator, it has awarded over $500 million to 83 individuals since issuing its first award in 2012. All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action. Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million. No money has been taken or withheld from harmed investors to pay whistleblower awards.
The SEC protects the confidentiality of whistleblowers, as set forth in the Dodd-Frank Act, and does not disclose information that could reveal a whistleblower’s identity.
For more information about the whistleblower program and how to report a tip, visit www.sec.gov/whistleblower.
This information is all publicly available and provided to you by The White Law Group. The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.
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