US SEC Awards $11.5 Million to Two Whistleblowers in a Single Case
- One whistleblower received around $7 million for being an initial source in the investigation.

The SEC granted 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 $7 million, while the second received over $4.5 million. In fact, the higher awarded whistleblower had an essential role in the investigation because they were the initial source that led the US SEC to open an inquiry into violations of the rulings. “The second whistleblower, by comparison, submitted information later, after the investigation was already underway, and had delayed reporting to the Commission for several years after becoming aware of the wrongdoing,” the US authority commented on the second whistleblower.
So far, the SEC has awarded $2 billion to 212 individuals since the whistleblower program started in 2012. “This case demonstrates the Commission’s continued commitment to rewarding individuals who provide high-quality tips, and particularly timely ones. These whistleblowers reported credible information that aided the Commission’s investigation, and their subsequent cooperation allowed the Commission to better understand the violations that formed the basis of the enforcement action,” Emily Pasquinelli, Acting Chief of the US SEC’s Office of the Whistleblower, stated.
Recent Whistleblowers Awards
Last month, the US SEC said it had awarded approximately $2.6 million to five whistleblowers who assisted in three separate cases. The watchdog granted around $1.2 million to one whistleblower who gave ‘valuable independent analysis’ based upon a complex algorithm.
That said, such a manoeuvre helped the SEC’s staff to save time and spend it on other resources, plus it helped to bolster the settlement negotiations of an enforcement action. The second-order notes that $1 million was given to three individuals whose information led to take enforcement actions that ended successfully.
The SEC granted 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 $7 million, while the second received over $4.5 million. In fact, the higher awarded whistleblower had an essential role in the investigation because they were the initial source that led the US SEC to open an inquiry into violations of the rulings. “The second whistleblower, by comparison, submitted information later, after the investigation was already underway, and had delayed reporting to the Commission for several years after becoming aware of the wrongdoing,” the US authority commented on the second whistleblower.
So far, the SEC has awarded $2 billion to 212 individuals since the whistleblower program started in 2012. “This case demonstrates the Commission’s continued commitment to rewarding individuals who provide high-quality tips, and particularly timely ones. These whistleblowers reported credible information that aided the Commission’s investigation, and their subsequent cooperation allowed the Commission to better understand the violations that formed the basis of the enforcement action,” Emily Pasquinelli, Acting Chief of the US SEC’s Office of the Whistleblower, stated.
Recent Whistleblowers Awards
Last month, the US SEC said it had awarded approximately $2.6 million to five whistleblowers who assisted in three separate cases. The watchdog granted around $1.2 million to one whistleblower who gave ‘valuable independent analysis’ based upon a complex algorithm.
That said, such a manoeuvre helped the SEC’s staff to save time and spend it on other resources, plus it helped to bolster the settlement negotiations of an enforcement action. The second-order notes that $1 million was given to three individuals whose information led to take enforcement actions that ended successfully.