SEC Awards More than $12 Million in Three Separate Whistleblower Awards
In February of 2021, the Securities and Exchange Commission (SEC) officially announced three new whistleblower awards. Collectively, the federal regulator granted more than $12 million in compensation to the three individuals who helped stop securities fraud. Since the program was launched in 2012, the SEC has now approved more than $750 in whistleblower compensation. Below, our Miami investment fraud attorneys discuss the federal agency’s most recent whistleblower awards.
SEC Whistleblower Awards: February 2021
$2.2 Million to Whistleblower Who Took Professional Risks, Provided High Quality Information
In Whistleblower Award Proceeding File No. 2021-25, the SEC granted $2.2 million in financial compensation to a whistleblower who came forward to provide high quality information to halt investment fraud. The agency notes that this anonymous individual took significant professional risks by first raising concerns internally, within the organization.
The draft information provided by the whistleblower was of such high quality that the SEC was able to move forward with enforcement action without speaking directly to the individual. A securities industry insider does not need to speak directly to the SEC to qualify for an award. In fact, federal law allows them to remain anonymous up to the point that whistleblower compensation is granted.
$700,000 to Whistleblower Who Provided Key documents and Critical Witnesses
In Whistleblower Award Proceeding File No. 2021-26, the SEC granted $700,000 in whistleblower compensation to an individual who helped the agency by handing over important documents and connecting investigators to key witnesses. Notably, the whistleblower reported the issue internally in an effort to remedy the violation. Using the information provided by the whistleblower, the SEC was able to take successful enforcement action to protect the rights of investors and the integrity of public markets.
$9.2 Million to Whistleblower Who Worked With SEC and DOJ
In Whistleblower Award Proceeding File No. 2021-28, the SEC has granted $9.2 million in whistleblower compensation to an individual who voluntarily provided non-public information of a securities fraud violation to the agency. The case was referred to the Department of Justice (DOJ) and the individual in question continued to cooperate with federal prosecutors.
The whistleblower award is significant—though far short of the record high $114 million award issued by the agency in October of 2020. Under federal law, SEC whistleblower compensation is granted as a percentage of any successful recovery made by the agency. Awards are issued at between 10 percent and 30 percent of the ultimate recovery. The greater an individual whistleblower’s contribution to successful enforcement action, the larger the percentage they will be awarded.
Get Help From Our Florida Securities Law Whistleblower Attorneys
At Carlson & Associates, P.A., our Miami securities fraud lawyer is dedicated to representing whistleblowers with the highest level of confidentiality and professionalism. We can help you bring a claim through the SEC whistleblower program. Call us now for a strictly private initial legal consultation. From our Miami office, we represent securities industry whistleblowers throughout Florida.
Resources:
sec.gov/rules/other/2021/34-91183.pdf
sec.gov/rules/other/2021/34-91164.pdf
sec.gov/rules/other/2021/34-91163.pdf
