January 23, 2022

SEC awards $13 million to whistleblower who alerted the SEC to investor fraud

On January 6, 2022, the US Securities and Exchange Commission (SEC) announced a $13 million whistleblower award for a claimant who “promptly alerted” the SEC to an ongoing investor fraud and provided significant information contributing to the success of an SEC enforcement action.  The SEC explained that the claimant  “expeditiously provided significant information that alerted” the SEC to the fraud, which prompted the SEC to open an investigation.  During the pendency of the investigation, the Claimant provided extensive assistance to the SEC by meeting in person with SEC staff and assisting them in understanding the mechanics of the fraudulent scheme.  Finally, the Claimant prepared a declaration to help the SEC obtain emergency relief and shut down the then-ongoing fraud, allowing the SEC to return tens of millions of dollars to harmed investors.

Since the whistleblower program began in 2012, the SEC has issued $1.2 billion in awards to 238 individuals.

SEC Press Release | SEC Order