The Securities and Exchange Commission (“SEC”) announced an award of over $500,000 to a whistleblower who provided information and assistance that helped shut down an ongoing fraudulent scheme. The whistleblower initially raised concerns internally before submitting a tip to the SEC.
In connection with the announcement, Jane Norberg, Chief of the SEC’s Office of Whistleblower, said that with this award, the SEC had “awarded 40 individuals this fiscal year, surpassing last year’s record of 39 individual awards. She added that the SEC had “awarded whistleblowers nearly $200 million in the first half of FY21 alone.”
In total, the SEC has awarded over $760 million to 145 individuals since the whistleblower program became effective in August 2011.
Congress established the whistleblower program to incentivize whistleblowers with specific, timely, and credible information about federal securities laws violations to report to the SEC. A whistleblower may receive an award if they voluntarily provide the SEC with qualifying information, leading to successful enforcement. The award can range from 10 percent to 30 percent of the money collected due to the enforcement action.
Individuals who have information regarding fraud or other violations of federal securities laws should contact law firm Iorio Altamirano LLP for a free consultation to review your legal rights on how to file a whistleblower tip to the SEC and preserve eligibility to receive a whistleblower award.