The Securities and Exchange Commission announced awards of more than $28 million combined to seven individuals whose information and assistance led to a successful SEC enforcement action.
The seven whistleblowers were composed of a single claimant and two sets of joint claimants. Each of the claimants provided information that significantly contributed to an SEC investigation. The single claimant and first set of joint claimants provided significant and detailed information early in the investigation that saved staff considerable time and resources. The second set of joint claimants provided new, but more limited, information later in the investigation.
“These whistleblowers provided valuable information and substantial assistance that played a critical role in the SEC returning millions of dollars to harmed investors,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower.
Payments to whistleblowers are made out of an investor protection fund, established by Congress, which 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. Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action. Whistleblower awards can range from 10 to 30 percent of the money collected when the monetary sanctions exceed $1 million.
As set forth in the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers and does not disclose any information that could reveal a whistleblower’s identity.
Jeffrey Newman represents whistleblowers under the SEC, CFTC and FINCEN whistleblower programs. Whistleblowers who provide original information to these agencies through counsel, may receive rewards totaling up to 30 percent of any successful recovery made by the SEC, CFTC OR FINCEN and the names and identification of the whistleblowers are not revealed. Jeff Newman can be reached at Jeff@Jeffnewmanlaw.com or at 617-823-3217
