SEC Issues $4 Million Whistleblower Award

Written September 23, 2016 by Janine Arno

On September 20, 2016, the Securities and Exchange Commission (SEC) announced an award of more than $4 million to a whistleblower whose original information alerted the agency to a fraud.   The SEC’s Whistleblower Program has awarded more than $111 million to 34 whistleblowers since its inception in 2011.   SEC enforcement actions from whistleblower tips have resulted in more than $500 million in financial remedies.

“Our program continues to incentivize whistleblowers to come forward with solid information that helps us bring violators to justice before more wrongdoing can occur,” said Jane Norberg, Acting Chief of the SEC’s Office of the Whistleblower.

By law, the SEC protects the confidentiality of whistleblowers and does not disclose information that might directly or indirectly reveal a whistleblower’s identity.  The SEC also provide provisions to safeguard whistleblowers from retaliation.

Whistleblowers who voluntarily provide the SEC with unique and useful information that leads to a successful enforcement action may be eligible for an award.  Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 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.

For more information about the SEC Whistleblower Program and the Firm’s resources in this area, please visit the Robbins Geller Rudman & Dowd LLP Whistleblower page.