Washington, DC (STL.News) The Securities and Exchange Commission (SEC) today announced an aggregate award of approximately $3 million to two whistleblowers whose information and assistance led to a successful SEC enforcement action. The whistleblowers separately and independently provided SEC staff with valuable information and ongoing assistance, which included participating in multiple interviews with the staff and providing helpful documents.
“Today’s whistleblowers played an instrumental role in helping the SEC bring this important action,” said Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower. “The first whistleblower provided information early in the investigation and helped SEC staff develop its case and focus its resources, while the second whistleblower helped staff uncover misappropriated funds and fraudulent transfers.”
The SEC has awarded approximately $932 million to 172 individuals since issuing its first award in 2012. 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. 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 successful enforcement action. Whistleblower awards can range from 10 percent 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.