Three awards worth a combined total of approximately $18 million available to three individuals
Today, the Securities and Exchange Commission (SEC) made three awards worth a combined total of approximately $18 million available to three individuals who came forward with information and assistance that was instrumental in the successful completion of an enforcement action.
The first person to blow the whistle provided the SEC with information that was both comprehensive and significant, which ultimately led to the commission opening an investigation into a fraudulent scheme. The information and assistance provided by this whistleblower not only helped save a significant amount of staff time and resources, but it also had a significant impact on the overall success of the enforcement action.
The information provided by the second and third whistleblowers, which was provided later on in the investigation, was also extremely helpful and contributed significantly to the accomplishment of the enforcement action.
All three whistleblowers provided valuable information and assistance, which played a critical role in the SEC bringing an enforcement action and returning millions of dollars to harmed investors,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower. The SEC brought an enforcement action and returned millions of dollars to harmed investors because of the information and assistance provided by the whistleblowers,” she added.
Payments to whistleblowers come from an investor protection fund that was established by Congress. This fund receives all of its funding from monetary sanctions that lawbreakers in the securities industry are required to pay to the SEC. There has been no theft or withholding of funds from investors who have been harmed in order to pay whistleblower awards.
When whistleblowers voluntarily provide the Securities and Exchange Commission (SEC) with original, timely, and credible information that results in a successful enforcement action, they may be eligible for an award. When the monetary sanctions total more than one million dollars, awards for whistleblowers can range from 10 to 30 percent of the total amount collected.
The Dodd-Frank Act requires that the Securities and Exchange Commission (SEC) protect the confidentiality of whistleblowers and refrain from disclosing information that could lead to the identity of a whistleblower.
Visit www.sec.gov/whistleblower to learn how to report a tip as well as obtain additional information regarding the whistleblower program.
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