SEC Awards More Than $1.6 Million To One Whistleblower And More Than $570,000 To Two Other Whistleblowers
Kehoe Law Firm, P.C. is making individuals aware that on March 23, 2020, the SEC announced an award of more than $1.6 million to a whistleblower whose information tipped the agency to securities law violations and helped form part of the basis for charges brought in a successful enforcement action. In addition to the tip, the whistleblower provided helpful assistance early in the investigation, preserving SEC time and resources.
On March 24, 2020, the SEC announced awards totaling over $570,000 to two whistleblowers who provided significant information and assistance that helped the SEC bring multiple successful enforcement actions. The first whistleblower received an award of approximately $478,000 and the second whistleblower received an award of approximately $94,000.
The SEC has awarded approximately $396 million to 76 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.