Four whistleblowers have been awarded a total of nearly $3.5 million by the Securities and Exchange Commission for coming forward and providing assistance in a recent investigation, the SEC announced.
Information provided by three of the whistleblowers caused the commission staff to open a new investigation that led to a successful enforcement action. As a result of that information, another agency opened an investigation that led to a separate successful enforcement action.
In addition, the SEC said a fourth whistleblower analyzed publicly available information to provide insights that caused the staff to focus on new allegations that advanced the investigation.
Under the SEC’s whistleblower program, the commission is authorized by Congress to provide monetary awards to eligible individuals who voluntarily come forward with original, timely and credible information that leads to a commission enforcement action in which over $1 million in sanctions is ordered.
“Credible and specific tips of securities laws violations, whether from corporate insiders or members of the public, strengthen the Commission’s enforcement program,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower. “Today’s whistleblowers provided valuable information that assisted the Commission’s investigation.”
Created by Congress under the Dodd Frank of 2010, the whistleblower program has awarded about $1.3 billion to 273 individuals since the first award was issued 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. The confidentiality of all whistleblowers is protected by the SEC, and no information is disclosed that could reveal their identity.
The attorneys at Hyman Cotter PC have decades of experience dealing with securities fraud cases and have a deep understanding of how capital markets and financial service firms are intended to work to protect investors. If you think your financial professional or firm engaged in misconduct that caused investment losses, contact us for a free consultation at 312-291-4600 or through our online contact form.
