September 25, 2020/US SEC
In the first order, a whistleblower was awarded over $1.8 million for taking both personal and professional risks in reporting information through the internal compliance system at a company. The tip revealed overseas conduct that would otherwise have been hard to detect. The whistleblower’s internal report resulted in an internal investigation at the company and a subsequent report of the findings to the SEC. The whistleblower also provided the information to the SEC.
In the second order, a whistleblower was awarded $750,000 for reporting securities violations occurring abroad to the SEC, which caused the SEC staff to open an investigation that resulted in a successful enforcement action. The whistleblower also reported the concerns internally.
“Misconduct occurring overseas can have a major impact on U.S. markets while at the same time remaining hard to detect. Today’s awards demonstrate the unique ability of whistleblowers to help the SEC uncover and pursue these cases,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “The awards further confirm the strength and vitality of the SEC’s whistleblower program as the agency has made an unprecedented eight whistleblower awards in the last month alone.”
The SEC has awarded approximately $525 million to 99 individuals since issuing its first award in 2012. All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards. Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action. Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million.
As set forth in the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers and does not disclose information that could reveal a whistleblower’s identity.
For more information about the whistleblower program and how to report a tip, visit www.sec.gov/whistleblower.