SEC awards more than $40 million to four whistleblowers

On January 21, 2022, the US Securities and Exchange Commission (SEC) announced that it had granted whistleblower awards totaling $40 million to four claimants in connection with three separate enforcement actions.

In the first matter, the SEC announced an award of $37 million in total to two joint claimants whose information and assistance contributed to the success of an SEC enforcement action.  The SEC explained that the joint claimants provided “key evidence that significantly contributed to” the SEC investigation, helped the SEC “understand the evidence,” and provided “ongoing assistance” as the investigation progressed.

In the second matter, the SEC announced an award of $1.8 million to a claimant who provided (i) new and important information that prompted the SEC to open an investigation and (ii) substantial assistance during the pendency of the SEC’s investigation (including attending voluntary interviews), and whose information formed the basis of the SEC’s charges in the resulting enforcement action.  The SEC also noted that the claimant had “quickly reported internally the misconduct” in an attempt to remedy it, and had “suffered hardships” as a result.  

In the third matter, the SEC announced an award of $1.5 million to a claimant who provided new information that helped SEC investigators “formulate their investigative strategy” and who helped the SEC “understand the issues,” which saved the SEC significant time and resources.

Since the whistleblower program began in 2012, the SEC has issued $1.2 billion in awards to 245 individuals.  

SEC Press Release | SEC Order 1 | SEC Order 2 | SEC Order 3

 
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