The Securities and Exchange Commission (“SEC”) announced a whistleblower award of roughly $279 million to a whistleblower who provided information to the SEC, leading to a successful regulatory enforcement action by the SEC and another federal agency. This is the largest amount the SEC has ever awarded to a whistleblower, more than doubling the $114 million the SEC awarded to a whistleblower in October 2020.
Top 10 SEC Whistleblower Awards:
- $279 million – May 5, 2023
- $114 million – October 22, 2020
- $110 million – September 15, 2021
- $50 million – April 15, 2021
- $50 million – March 19, 2018
- $50 million – June 4, 2020
- $39 million – September 6, 2018
- $37 million – December 19, 2022
- 437 million – March 26, 2019
- $36 million – September 24, 2021
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.
In the SEC’s press release, Gubir S. Frewal, Director of the SEC’s Division of Enforcement, made the following statement: “This success directly benefits investors, as whistleblower tips have contributed to enforcement actions resulting in orders requiring bad actors to disgorge more than $4 billion in ill-gotten gains and interest. As this award shows, there is a significant incentive for whistleblowers to come forward with accurate information about potential securities law violations.”
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.