The Securities and Exchange Commission has announced the latest awards in its whistleblower program, which provides payments to eligible individuals who come forward with information about securities fraud or other wrongdoing.
The SEC said that $12 million will be split among three joint whistleblowers who provided critical information and assistance in one of the commission’s enforcement actions.
The individuals who received the awards were credited with giving the SEC significant information and extensive cooperation while meeting numerous times with the commission’s enforcement staff. Their assistance helped expand the scope of the investigation and the charges brought in the enforcement action and also saved the SEC substantial time and resources.
“Certain of the joint whistleblowers suffered hardships due to their whistleblowing”, the commission added.
“Whistleblowers play a key role in helping the SEC hold wrongdoers accountable,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower. “Even where an investigation is already open, whistleblowers may contribute by providing new information about misconduct.”
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.
For more information about the whistleblower program and how to report a tip, visit www.sec.gov/whistleblower.
The attorneys at Hyman Cotter PC 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 Hyman Cotter PC at 312-291-4600 or through our online contact form.
