Whistleblowers have been awarded a total of more than $1 billion by the Securities and Exchange Commission since the beginning of the program in 2012, the SEC announced.
The awards, which went to 207 individuals, were paid from 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, the SEC said. People are eligible for an award when they voluntarily provide the SEC with original, timely and credible information that leads to a successful enforcement action against a violator, the agency said/.
Among the four most recent awards announced this week was one for $110 million, which is the second-highest award in the program's history, following an award of more than $114 million paid in October 2020. The $110 million award went to a person who “provided significant independent analysis that substantially advanced the SEC's and another agency's investigations,” the SEC said.
Also announced this week were awards of $7 million, $4.5 million and $4 million. The larger award was in recognition of the fact that the whistleblower was the initial source that caused the staff to open the investigation into hard-to-detect violations and thereafter provided substantial assistance, the SEC said.
All of the awards "underscore the important role that whistleblowers play in helping the SEC detect, investigate and prosecute potential violations of the securities laws," SEC Chair Gary Gensler said in a statement. "The assistance that whistleblowers provide is crucial to the SEC's ability to enforce the rules of the road for our capital markets."
Whistleblower awards can range from 10% to 30% of the money collected when the monetary sanctions exceed $1 million.