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SEC awards whistleblower $18 million for help in successful investigation

On Behalf of | Sep 5, 2023 | Securities and Compliance

The Securities and Exchange Commission has announced the latest award in its whistleblower program, which provides monetary payments to eligible individuals who come forward with information about securities fraud or other wrongdoing.

The commission said it had awarded over $18 million to a whistleblower whose information and assistance led to a successful SEC enforcement action.

After initially reporting misconduct internally, the whistleblower submitted information that prompted the SEC to launch an investigation.  The individual then continued to provide helpful information and cooperation that the commission said saved time and resources during its investigation.

“Whistleblowers continue to play an essential role in assisting the agency in detecting misconduct and bringing securities law violators to justice,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower. “Today’s whistleblower refused to turn a blind eye to the wrongdoing, reporting misconduct internally and then to the Commission.”

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, which can range from 10 to 30 percent of the money collected when the sanctions exceed $1 million. The confidentiality of all whistleblowers is protected by the SEC, and no information is disclosed that could reveal their identity. No money has been taken or withheld from harmed investors to pay whistleblower awards.

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.