The Securities and Exchange Commission (SEC) has issued thelargest-ever whistleblower award of nearly $279 million. The award was granted to a whistleblower whose information and assistance led to successful enforcement actions by the SEC. This award surpasses the previous record of $114 million given in October 2020.
The SEC’s whistleblower program has been highly successful in incentivizing individuals to come forward with accurate information about potential securities law violations. The information provided by this particular whistleblower expanded the scope of misconduct charged in the enforcement actions. It is important to note that payments to whistleblowers come from an investor protection fund established by Congress, and no money is taken from harmed investors to fund these awards. Whistleblowers may receive an award ranging from 10 to 30 percent of the monetary sanctions collected, provided the sanctions exceed $1 million. The SEC maintains strict confidentiality regarding the identity of whistleblowers, in accordance with the Dodd-Frank Act.
For more information on the whistleblower program and reporting tips, visit the SEC’s official website.