October 29, 2020

Insider receives $10 million whistleblower award

On October 29, 2020, the US Securities and Exchange Commission announced the award of over $10 million to a whistleblower who first reported internally, and then to the SEC, information that precipitated an investigation and formed the basis of a successful SEC enforcement action.  According to the SEC, the whistleblower provided assistance throughout the investigation that led directly to “almost every factual finding and charge” against the company, communicated with the SEC on multiple occasions, helped “decipher communications,” and helped the SEC understand some of the complex issues involved in the case.  The SEC’s investigation concluded with the entry of a cease and desist order and the payment of a monetary penalty by the company.  A state agency also entered into a civil settlement with the company to resolve charges based on the same conduct.

The over $10 million award came one week after the largest whistleblower award ever granted by the SEC, $114 million.  The whistleblower award announced on October 29 marked the 109th individual to receive such an award since the whistleblower program was inaugurated in 2012.

SEC press release | Order