The Securities and Exchange Commission 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 SEC said that it has awarded $37 million to a whistleblower whose assistance led to a successful enforcement action.
According to the commission, the whistleblower persisted in reporting misconduct internally. Those efforts prompted the individual’s employer to conduct its own investigation and eventually report the results to the SEC. As a result of the company’s self-reporting, the commission launched its own probe into the misconduct.
This SEC added that its staff would not have learned the full extent of the employer’s misconduct without the whistleblower’s ongoing, extensive, and timely assistance..
“Today’s whistleblower learned of misconduct and made the difficult decision to report their concerns. This individual, who was retaliated against for their whistleblowing activity, played a crucial role in the ultimate success of the enforcement proceeding,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower.
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.
