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SEC awards over $10 million to whistleblower who contributed to enforcement action

On Behalf of | Nov 11, 2022 | Securities and Compliance

The Securities and Exchange Commission has announced the latest award in its whistleblower program that issues payments to those who help the commission identify possible fraud and other violations.

In a news release, the SEC said it had awarded over $10 million to a whistleblower whose information and assistance significantly contributed to a successful SEC enforcement action.

The commission said the individual provided important documents and met twice with its enforcement staff, adding that the whistleblower’s allegations were critical to the investigation and eventual charges.

“The whistleblower awarded today provided information that resulted in the return of a significant amount of money to harmed investors,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower. “This illustrates how the Whistleblower Program works to benefit, via financial remediation, investors who are victimized by those who violate our securities laws.”

Created by Congress under the Dodd-Frank Act of 2010, the whistleblower program is financed entirely through monetary sanctions paid to the SEC by securities law violators. Individuals who voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action may be eligible for a whistleblower award. The confidentiality of all whistleblowers is protected by the SEC, and no information is disclosed that could reveal their identity.

The attorneys at Lewitas Hyman include former senior attorneys at the SEC whose legal experience and industry knowledge make them uniquely qualified to provide counsel on securities regulatory, compliance and enforcement matters. Our attorneys fully understand the regulatory scrutiny financial professionals and their firms face from the various regulators that oversee the financial services industry. If your firm is facing an investigation from a regulatory agency, please contact Lewitas Hyman at (888) 655-6002 or through our online contact form.