US SEC Awards $2.6 Million to Whistleblowers in Three Cases
- Whistleblowers provided 'valuable information' in three separate cases led by the US watchdog.

The US Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term Commission (SEC) announced on Friday that it had awarded approximately $2.6 million to five whistleblowers who assisted in three separate cases. According to the press release, the watchdog granted around $1.2 million to one 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 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 helping to bolster the settlement negotiations of an enforcement action as a consequence. The second-order notes that $1 million was given to three individuals whose information led to take enforcement actions that ended successfully. Although these persons had roles in the involved company, they were still entitled to receive the award “because they submitted their information to the Commission more than 120 days after the alleged conduct had been reported internally.”
The third-order stated: “The SEC awarded a whistleblower more than $350,000 for providing independent analysis that led to a successful enforcement action. Based on unusual effort and expertise developed over many years, the whistleblower identified patterns among publicly available information that allowed the Commission to quickly identify and prevent wrongdoing and to preserve assets.”
Bolstering Whistleblower Awarding Program
“Today’s awards demonstrate the Commission’s commitment to reward whistleblowers who provide valuable information, developed either from a whistleblower’s independent knowledge or the whistleblower’s independent analysis, which substantially contributes to a successful enforcement action,” Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower, commented on the awards given to the whistleblowers today.
The SEC has been actively bolstering its whistleblower’s awarding program. In June, Finance Magnates reported that the watchdog granted around $5.3 million to whistleblowers who have assisted them by providing information regarding enforcement proceedings. One of them pocketed almost $4 million for sending sensitive information that allowed the watchdog to succeed in an enforcement action.
The US Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term Commission (SEC) announced on Friday that it had awarded approximately $2.6 million to five whistleblowers who assisted in three separate cases. According to the press release, the watchdog granted around $1.2 million to one 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 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 helping to bolster the settlement negotiations of an enforcement action as a consequence. The second-order notes that $1 million was given to three individuals whose information led to take enforcement actions that ended successfully. Although these persons had roles in the involved company, they were still entitled to receive the award “because they submitted their information to the Commission more than 120 days after the alleged conduct had been reported internally.”
The third-order stated: “The SEC awarded a whistleblower more than $350,000 for providing independent analysis that led to a successful enforcement action. Based on unusual effort and expertise developed over many years, the whistleblower identified patterns among publicly available information that allowed the Commission to quickly identify and prevent wrongdoing and to preserve assets.”
Bolstering Whistleblower Awarding Program
“Today’s awards demonstrate the Commission’s commitment to reward whistleblowers who provide valuable information, developed either from a whistleblower’s independent knowledge or the whistleblower’s independent analysis, which substantially contributes to a successful enforcement action,” Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower, commented on the awards given to the whistleblowers today.
The SEC has been actively bolstering its whistleblower’s awarding program. In June, Finance Magnates reported that the watchdog granted around $5.3 million to whistleblowers who have assisted them by providing information regarding enforcement proceedings. One of them pocketed almost $4 million for sending sensitive information that allowed the watchdog to succeed in an enforcement action.