The Securities and Exchange Commission (“SEC”) announced a whistleblower award of more than $37 million to a whistleblower.
The whistleblower provided previously unknown information to the SEC and identified potential witnesses and documents. The help provided by the whistleblower significantly contributed to a successful enforcement action.
This award is the first payment made to a whistleblower in 2024. By way of comparison, in 2023, the SEC announced nine awards, which paid out over half of a billion dollars to informants. Payments to whistleblowers are made out of an investor protection fund, established by Congress. The investor protection fund is funded by fines and sanctions placed on wrongdoers who violate federal securities laws.
Congress established the whistleblower program to incentivize whistleblowers with specific, timely, and credible information about federal securities law 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.
Whistleblowers play an important role in fighting corruption, protecting retail investors, and maintaining a free and healthy market. Iorio Altamirano LLP, an investor advocate law firm, is committed to effectively representing whistleblowers.
Individuals with information regarding fraud or other violations of federal securities laws should contact whistleblower law firm Iorio Altamirano LLP for a free consultation to review your legal rights on filing a whistleblower tip to the SEC and preserve eligibility to receive a whistleblower award.