SEC Distributes $1.1 Million Bounty to Five Whistleblowers
- SEC awarded more than $100,000 to a whistleblower who provided independent analysis of publicly available material.

For alerting the SEC to ‘hard-to-detect’ breaches with vital knowledge and supporting evidence, three whistleblowers were awarded $500,000 in connection with two related enforcement actions. The first Whistleblower Whistleblower A whistleblower is an individual who manages to provide information or activity within a private or public organization that is deemed illegal, unethical, or not correct. In many countries, including the United States, whistleblowers are protected by law and in some cases can even recoup rewards if their information leads to successful prosecution.In the context of the financial services industry, whistleblowers play a large role in oversight, helping unmask several episodes of illicit behavior each year. Whistleblowers are a necessary force in the fight against corruption, scams, fraud, and other forms of manipulation that can affect all levels of financial systems.The methods by which whistleblowers may bring allegations to light vary. This includes contacting a third-party outside of an accused organization such as the media, government, law enforcement, or those who are concerned. Whistleblowers assume a large amount of risk with such disclosures, often facing stiff reprisal and retaliation from those who are accused or alleged of wrongdoing.Whistleblower AwardsIn order to safeguard the identity and well-being of whistleblowers, the United States’ Securities and Exchange Commission (SEC) has installed an entire division towards these individuals.As of May 2020, the SEC has awarded over $396 million to 77 individuals since issuing its first award in 2012. All payments have been made out of an investor protection fund established by the US Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. 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 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million. A whistleblower is an individual who manages to provide information or activity within a private or public organization that is deemed illegal, unethical, or not correct. In many countries, including the United States, whistleblowers are protected by law and in some cases can even recoup rewards if their information leads to successful prosecution.In the context of the financial services industry, whistleblowers play a large role in oversight, helping unmask several episodes of illicit behavior each year. Whistleblowers are a necessary force in the fight against corruption, scams, fraud, and other forms of manipulation that can affect all levels of financial systems.The methods by which whistleblowers may bring allegations to light vary. This includes contacting a third-party outside of an accused organization such as the media, government, law enforcement, or those who are concerned. Whistleblowers assume a large amount of risk with such disclosures, often facing stiff reprisal and retaliation from those who are accused or alleged of wrongdoing.Whistleblower AwardsIn order to safeguard the identity and well-being of whistleblowers, the United States’ Securities and Exchange Commission (SEC) has installed an entire division towards these individuals.As of May 2020, the SEC has awarded over $396 million to 77 individuals since issuing its first award in 2012. All payments have been made out of an investor protection fund established by the US Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. 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 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million. Read this Term provided information that prompted the opening of an investigation, while the second and third tipsters were paid for assistance in an ongoing investigation.
Another $600,000 was separately distributed to a whistleblower for tipping it off and giving continuing assistance during the SEC investigation. Additionally, the tipster repeatedly reported the concerns internally in an effort to remedy the violations.
The individual, unidentified in accordance with SEC policy, provided 'significant' assistance including meeting with investigative staff in-person, providing critical documents evidencing possible wrongdoing, and identifying witnesses.
In the third order, the SEC awarded more than $100,000 to a whistleblower who provided an independent analysis of publicly available material which led the agency to look at new conduct during an investigation.
In this particular case, the tipster examined publicly available materials and then alerted the watchdog to refocus an ongoing investigation on the violations that were ultimately charged. The SEC praised the whistleblower, who continuously provided the agency with new insights into the securities law violations, which helped the watchdog protect investors’ assets.
In addition to the tip, the whistleblower’s information and assistance helped the regulator devise an investigative plan in early stages, preserving the watchdog time and resources, it said.
“Among other things, the whistleblower conducted an analysis using information from publicly available documents to calculate an estimate of an important metric for a company and then showed that the company's disclosures regarding that metric were implausible. This is the fifth individual in FY21 who received an award based on independent analysis,” the SEC said.
The US top regulator did not name the companies involved or the people getting the awards, citing federal law that protects confidentiality.
Today’s announcement brings the whistleblower program’s total endowment to over $737 million since issuing its first award in 2012.
Whistleblowers are entitled under law to between 10% and 30% of the monetary penalties paid by companies in cases where their information led to a successful enforcement action of $1 million or more.
For alerting the SEC to ‘hard-to-detect’ breaches with vital knowledge and supporting evidence, three whistleblowers were awarded $500,000 in connection with two related enforcement actions. The first Whistleblower Whistleblower A whistleblower is an individual who manages to provide information or activity within a private or public organization that is deemed illegal, unethical, or not correct. In many countries, including the United States, whistleblowers are protected by law and in some cases can even recoup rewards if their information leads to successful prosecution.In the context of the financial services industry, whistleblowers play a large role in oversight, helping unmask several episodes of illicit behavior each year. Whistleblowers are a necessary force in the fight against corruption, scams, fraud, and other forms of manipulation that can affect all levels of financial systems.The methods by which whistleblowers may bring allegations to light vary. This includes contacting a third-party outside of an accused organization such as the media, government, law enforcement, or those who are concerned. Whistleblowers assume a large amount of risk with such disclosures, often facing stiff reprisal and retaliation from those who are accused or alleged of wrongdoing.Whistleblower AwardsIn order to safeguard the identity and well-being of whistleblowers, the United States’ Securities and Exchange Commission (SEC) has installed an entire division towards these individuals.As of May 2020, the SEC has awarded over $396 million to 77 individuals since issuing its first award in 2012. All payments have been made out of an investor protection fund established by the US Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. 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 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million. A whistleblower is an individual who manages to provide information or activity within a private or public organization that is deemed illegal, unethical, or not correct. In many countries, including the United States, whistleblowers are protected by law and in some cases can even recoup rewards if their information leads to successful prosecution.In the context of the financial services industry, whistleblowers play a large role in oversight, helping unmask several episodes of illicit behavior each year. Whistleblowers are a necessary force in the fight against corruption, scams, fraud, and other forms of manipulation that can affect all levels of financial systems.The methods by which whistleblowers may bring allegations to light vary. This includes contacting a third-party outside of an accused organization such as the media, government, law enforcement, or those who are concerned. Whistleblowers assume a large amount of risk with such disclosures, often facing stiff reprisal and retaliation from those who are accused or alleged of wrongdoing.Whistleblower AwardsIn order to safeguard the identity and well-being of whistleblowers, the United States’ Securities and Exchange Commission (SEC) has installed an entire division towards these individuals.As of May 2020, the SEC has awarded over $396 million to 77 individuals since issuing its first award in 2012. All payments have been made out of an investor protection fund established by the US Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. 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 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million. Read this Term provided information that prompted the opening of an investigation, while the second and third tipsters were paid for assistance in an ongoing investigation.
Another $600,000 was separately distributed to a whistleblower for tipping it off and giving continuing assistance during the SEC investigation. Additionally, the tipster repeatedly reported the concerns internally in an effort to remedy the violations.
The individual, unidentified in accordance with SEC policy, provided 'significant' assistance including meeting with investigative staff in-person, providing critical documents evidencing possible wrongdoing, and identifying witnesses.
In the third order, the SEC awarded more than $100,000 to a whistleblower who provided an independent analysis of publicly available material which led the agency to look at new conduct during an investigation.
In this particular case, the tipster examined publicly available materials and then alerted the watchdog to refocus an ongoing investigation on the violations that were ultimately charged. The SEC praised the whistleblower, who continuously provided the agency with new insights into the securities law violations, which helped the watchdog protect investors’ assets.
In addition to the tip, the whistleblower’s information and assistance helped the regulator devise an investigative plan in early stages, preserving the watchdog time and resources, it said.
“Among other things, the whistleblower conducted an analysis using information from publicly available documents to calculate an estimate of an important metric for a company and then showed that the company's disclosures regarding that metric were implausible. This is the fifth individual in FY21 who received an award based on independent analysis,” the SEC said.
The US top regulator did not name the companies involved or the people getting the awards, citing federal law that protects confidentiality.
Today’s announcement brings the whistleblower program’s total endowment to over $737 million since issuing its first award in 2012.
Whistleblowers are entitled under law to between 10% and 30% of the monetary penalties paid by companies in cases where their information led to a successful enforcement action of $1 million or more.