A pair of whistleblowers will receive a combined $54 million from the Securities and Exchange Commission (SEC) for their roles in providing information and assistance leading to enforcement action.
SEC officials said the agency is awarding $15 million to one of the whistleblowers and to the second $39 million, which represents the second-largest in the history of the SEC’s whistleblower program.
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, officials said, adding whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million.
“Whistleblowers serve as invaluable sources of information, and can propel an investigation forward by helping us overcome obstacles and delays in investigation,” Jane Norberg, chief of the SEC’s Office of the Whistleblower, said. “These substantial awards send a strong message about the SEC’s commitment to whistleblowers and the value they bring to the agency’s mission.”
All whistleblower payments are made out of an investor protection fund established by Congress financed entirely through monetary sanctions paid to the SEC by securities law violators.
The law stipulates the SEC protects the confidentiality of whistleblowers, according to officials, and does not disclose information directly or indirectly revealing a whistleblower’s identity.