$450,000 Awarded to SEC Whistleblower Whose Significant Information Helped Focus Ongoing Investigation of Violations Ultimately Charged

Kehoe Law Firm, P.C. is making individuals aware that on March 30, 2020, the Securities and Exchange Commission announced an award of $450,000 to a whistleblower whose significant information helped focus an ongoing investigation on the violations that were ultimately charged. 

The whistleblower, who had compliance-related responsibilities, is eligible for an award, because the whistleblower reported concerns about the relevant conduct internally within the company and then waited 120 days before reporting to the SEC.  This is the SEC’s third whistleblower award to an individual who had compliance or internal audit responsibilities.

The SEC has awarded over $396 million to 77 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.

Source: SEC.gov

Kehoe Law Firm, P.C.