The Securities and Exchange Commission (SEC) has awarded more than $10 m to a whistleblower who provided information and assistance that significantly contributed to a successful SEC enforcement action where money was returned to harmed investors. 

For this action, the whistleblower provided important documents to and met twice with enforcement staff. The charges in the covered action had a close connection with the whistleblower’s allegations, which were critical to SEC’s investigation.

Significant amount

“The whistleblower awarded today provided information that resulted in the return of a significant amount of money to harmed investors,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower.

“This illustrates how the Whistleblower Program works to benefit, via financial remediation, investors who are victimized by those who violate our securities laws.”

$1.3bn to whistleblowers

Since the first whistleblowing award in 2012, the SEC has awarded more than $1.3bn to 282 individuals. During 2022, the SEC awarded over $137.25m to whistleblowers in 21 successful actions.

All awards to whistleblowers are made out of an investor protection fund, established by Congress, which is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblowers.