More Than $1.25 Million and $2.5 Million Awarded To Whistleblowers

More Than $1.25 Million and $2.5 Million Awarded To Whistleblowers

SEC Has Awarded Approximately $510 Million To 92 Individuals Since Issuing First Whistleblower Award 

Kehoe Law Firm, P.C. is making individuals aware that on August 31, 2020, the Securities and Exchange Commission announced an award of over $1.25 million to a whistleblower whose significant information prompted the agency to initiate a cause examination and bring an enforcement action that resulted in the return of millions of dollars to harmed investors.

“The whistleblower’s expeditious reporting alerted the agency to previously unknown securities violations,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower.  “This whistleblower’s vigilance and prompt reporting helped the agency move quickly to protect investors, resulting in the return of millions of dollars to harmed investors.”

On September 1, 2020, the Securities and Exchange Commission announced an award of over $2.5 million to joint whistleblowers whose tip based largely on highly probative independent analysis of a public company’s filings led to several successful enforcement actions.  In addition to their tip, the whistleblowers provided helpful assistance early in the investigation, which helped save the SEC time and resources.

The SEC has awarded approximately $510 million to 92 individuals since issuing its first award in 2012.  This includes awards to 25 individuals in this fiscal year, totaling approximately $123 million.  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.

Source: U.S. Securities and Exchange Commission – SEC.gov

Kehoe Law Firm, P.C.