SEC Issues Two Whistleblower Awards, Nearly $100 Million

On August 23rd, 2024, the Securities and Exchange Commission (SEC) issued two whistleblower awards totaling nearly $100 million. Together, the information provided by these whistleblowers contributed to successful enforcement action in a major securities fraud case. Here, our Miami SEC whistleblower rights attorney provides a more detailed overview of the awards.

SEC Whistleblower Award: $98 Million to Two Whistleblowers 

The SEC and another federal agency took successful legal action to address securities fraud. As confirmed in a press release from the SEC, the enforcement action would not have happened without the contributions of voluntary whistleblowers. The SEC has awarded a total of $98 million in whistleblower compensation in relation to this case to two individuals:

• Whistleblower #1 ($82 Million): In its Order Determining Whistleblower Award Claims, the SEC granted $82 million to Claimant I. As noted by the agency, Claimant I was the first whistleblower in this case. It was their tip that prompted the opening of the investigation. Further, Claimant I provided critical additional information and assistance.
• Whistleblower #2 ($16 Million): Claimant II was also awarded whistleblower compensation by the SEC. The agency granted this individual $16 million. In doing so, the SEC noted that Claimant II came forward later but still provided one specific piece of information that was essential to successful enforcement action.

 What Needs to Happen for You to Qualify for Whistleblower Compensation through the SEC 

The SEC whistleblower program provides compensation (rewards/awards) to people who voluntarily come forward and provide non-public information that leads the SEC—or another agency—to take enforcement action to stop securities fraud. In order to qualify for a whistleblower award from the SEC, all of the following standards must be satisfied:

• Voluntary Disclosure: The information provided must be given voluntarily. It must not come as a result of a legal request, a subpoena, or another inquiry from a regulatory body.
• Original Information: The whistleblower must provide original information derived from their independent knowledge or analysis. It cannot already be known by the SEC.
• Significance of Information: The information must be significant enough to aid the SEC in pursuing a successful enforcement action. It should show a violation of securities law.
• SEC Action and Monetary Sanctions: The information provided must lead to a successful SEC action resulting in monetary sanctions exceeding $1 million. A whistleblower award is a percentage of the sanctions recovered through enforcement action.
• Timeliness: Information must be submitted in a timely manner to be considered impactful in the context of ongoing investigations or to initiate a new investigation.
• Compliance with Eligibility Standards: Whistleblowers must comply with all eligibility requirements. Among other things, they must not be complicit in the violations they report.

Consult With Our Florida Securities Industry Whistleblower Lawyer Today

At ​Carlson & Associates, P.A., our Florida securities industry whistleblower attorney is an experienced advocate for clients. If you have any questions about the SEC whistleblower program, we are here to help. Contact us today for your completely confidential initial consultation. With a main office in Miami, we represent whistleblowers in the SEC program in Florida and nationwide.

Source:

sec.gov/newsroom/press-releases/2024-103