SEC Issues $3.8 Million Whistleblower Award; SEC Has Awarded Approximately $505 Million To 87 Individuals Since 2012
Kehoe Law Firm, P.C. is making consumers aware that on July 14, 2020, the Securities and Exchange Commission announced a $3.8 million award to a whistleblower who provided significant information that helped the SEC disrupt an ongoing fraudulent scheme. The resulting enforcement action returned millions of dollars to harmed investors.
“Today’s award underscores the paramount role the SEC’s whistleblower program plays in safeguarding the Main Street investor. Since the beginning of the program nearly ten years ago, the SEC has ordered more than $2.5 billion in financial remedies based on whistleblower information, including more than $1.4 billion in disgorgement and prejudgment interest, of which almost $750 million has been returned or is scheduled to be returned to harmed investors,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower.
The SEC has awarded approximately $505 million to 87 individuals since issuing its first award in 2012. This includes awards to 20 individuals in the last 10 months, totaling almost $119 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.
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: U.S. Securities and Exchange Commission – SEC.gov