March 31, 2023, Washington, D.C.
The Securities and Exchange Commission (SEC) said today that two people (Whistleblowers ) who helped with an SEC enforcement case will get more than $12 million in awards.
The initial whistleblower was essential in starting the investigation and revealing previously hidden wrongdoing. This whistleblower uncovered crucial evidence, aided the team in making sense of intricate fact patterns and problems, and worked tirelessly to find solutions. This whistleblower will get an award of over $9 million because of his or her bravery. More than $3 million will go to the second whistleblower, who provided significant new evidence during the probe.
Creola Kelly, who is in charge of the SEC’s Office of the Whistleblower, has said that “whistleblowers play a key role” in helping the agency find and prosecute wrongdoing and protect investors and the capital markets. The information and assistance provided by these two whistleblowers in identifying intricate misbehaviour highlighted the significance of the whistleblower program to the SEC‘s enforcement activities.
The Investor Protection Fund, which Congress set up and is paid for by fines given to people who break securities laws, gives money to people who report wrongdoing. Investors’ funds have not been withheld or taken in order to pay whistleblower compensation.
When a whistleblower voluntarily provides the SEC with unique, timely, and credible information that results in a successful enforcement action, the whistleblower may be entitled to an award. If the fines exceed $1 million, the whistleblower can receive between 10 and 30 per cent of the total amount.
The Dodd-Frank Act says that the SEC can’t give out any information that could be used to find out who a whistleblower is.
Whistleblowers Info
The Securities and Exchange Commission can get a lot of help and useful information from a “whistleblower” who knows about possible violations of securities law. Whistleblowers are valuable because they provide the Commission with information about potential fraud and other violations before they would otherwise be discovered. That helps the Commission protect investors, maintain the stability of the U.S. financial system, and bring those responsible for wrongdoing to justice faster.
Congress has given the Commission the power to give sanctions totalling more than $1,000,000 to informants who give original, high-quality information that leads to enforcement action. Awards might be anything from 10% to 30% of the total amount raised.
The Office of the Whistleblower is responsible for running the SEC’s whistleblower program. We recognize that disclosing information regarding securities fraud or other wrongdoing is a difficult decision, and we welcome your inquiries. Call (202) 551-4790 to reach the whistleblower office.
