In the Matter of the Claims for Awards
The SEC awarded over $12.5 million to Claimant 1 and over $2.5 million to Claimant 2 for providing original information that triggered and supported a successful enforcement action, with Claimant 1’s broader, initiating role justifying a higher award percentage, while a third claimant’s request was denied.
The SEC granted Claimant 1 an award of over $12.5 million and Claimant 2 an award of over $2.5 million for voluntarily providing original information that led to a successful enforcement action, though the underlying fraud and respondents remain redacted. Claimant 1’s information was critical in initiating the investigation and detailing the full scope of the misconduct, while Claimant 2’s contribution was more limited and had less impact on the outcome. The award percentages, though redacted, reflect Claimant 1’s greater contribution, and a third claimant’s request was denied for failing to seek reconsideration.
The SEC awarded Claimant 1 over $12.5 million and Claimant 2 over $2.5 million as whistleblowers for providing original, voluntary information that led to a successful enforcement action under the Securities Exchange Act of 1934. Although the specific nature of the fraud and the respondents involved were redacted, Claimant 1’s information was pivotal in initiating the investigation and outlining the full scope of the misconduct, whereas Claimant 2’s input was narrower and played a lesser role in the case’s success. The award percentages, while not disclosed, were structured to reflect this disparity in contribution, with Claimant 1 receiving a higher share of the monetary sanctions collected. A third claimant’s request for an award was denied because they did not seek reconsideration, making the denial final under SEC Rule 21F-10(f). The total amount of monetary sanctions imposed in the covered action was not disclosed, but the combined whistleblower awards exceed $15 million. The Commission’s order underscores the importance of timely, comprehensive whistleblower disclosures in uncovering securities violations. The Whistleblower Program continues to incentivize insiders to come forward with credible, actionable information.
Extracted insights
- $12.50M $12.5 million $10M–$100M
- $2.50M $2.5 million $1M–$10M
- person claims review staff
- person fraudulent scheme
- agency Securities and Exchange Commission
- person whistleblower award claims
- person whistleblower award recommendations
- Claimant 1 received whistleblower award More Than $12.5 Million
- Claimant 2 received whistleblower award More Than $2.5 Million
- Claimant 1 provided original information SEC
- Claimant 2 provided original information SEC
- Claimant 1's Information alerted Commission staff to Fraudulent Scheme
- SEC issued order determining Whistleblower Award Claims
- Claims Review Staff issued preliminary determinations Whistleblower Award Recommendations
- Vanessa A. Countryman signed as Secretary
UNITED STATES OF AMERICA before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 93547 / November 10, 2021 WHISTLEBLOWER AWARD PROCEEDING File No. 2022-12 In the Matter of the Claims for Awards in connection with Notice of Covered Action ORDER DETERMINING WHISTLEBLOWER AWARD CLAIMS The Claims Review Staff (“CRS”) issued Preliminary Determinations recommending that (“Claimant 1”) receive a whistleblower award of more than $12.5 million, equal percent ( %) of monetary sanctions collected or to be collected in the abovereferenced Covered Action, and (“Claimant 2”) receive a whistleblower award of more than $2.5 million, equal to percent ( * %) of monetary sanctions collected or to be collected in the Covered Action. 1 The recommendations of the CRS are adopted. The record demonstrates that Claimants 1 and 2 voluntarily provided original information to the Commission that led to the successful enforcement of the Covered Action. 2 1 The Preliminary Determination of the CRS also recommended denying an award to a third claimant who did not submit a request for reconsideration. Accordingly, the preliminary denial of the third claimant’s award application has become the Final Order of the Commission pursuant to Exchange Act Rule 21F-10(f), 17 C.F.R. § 240.21F10(f). 2 See Exchange Act Section 21F(b)(1), 15 U.S.C. § 78u-6(b)(1); Exchange Act Rule 21F-3(a), 17 C.F.R. § 240.21F3(a). --- page 2 --- While both whistleblowers provided substantial assistance to the staff in the Division of Enforcement, Claimant 1’s information was more significant, as it alerted Commission staff to the fraudulent scheme, prompting the opening of the investigation. Claimant 1’s information also was more comprehensive, relating to the overall scheme, whereas Claimant 2’s information was more limited in nature and had less of an impact on the success of the enforcement action. As a result, a percent ( %) award to Claimant 1, and a percent ( %) award to Claimant 2 appropriately reflects their respective levels of contribution to the Covered Action. Accordingly, it is ORDERED that Claimant 1 shall receive an award of percent ( %) and Claimant 2 shall receive an award of percent ( %) of the monetary sanctions collected or to be collected in the Covered Action. By the Commission. Vanessa A. Countryman Secretary
UNITED STATES OF AMERICA before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 93547 / November 10, 2021 WHISTLEBLOWER AWARD PROCEEDING File No. 2022-12 In the Matter of the Claims for Awards in connection with Notice of Covered Action ORDER DETERMINING WHISTLEBLOWER AWARD CLAIMS The Claims Review Staff (“CRS”) issued Preliminary Determinations recommending that (“Claimant 1”) receive a whistleblower award of more than $12.5 million, equal percent ( %) of monetary sanctions collected or to be collected in the abovereferenced Covered Action, and (“Claimant 2”) receive a whistleblower award of more than $2.5 million, equal to percent ( * %) of monetary sanctions collected or to be collected in the Covered Action. 1 The recommendations of the CRS are adopted. The record demonstrates that Claimants 1 and 2 voluntarily provided original information to the Commission that led to the successful enforcement of the Covered Action. 2 1 The Preliminary Determination of the CRS also recommended denying an award to a third claimant who did not submit a request for reconsideration. Accordingly, the preliminary denial of the third claimant’s award application has become the Final Order of the Commission pursuant to Exchange Act Rule 21F-10(f), 17 C.F.R. § 240.21F10(f). 2 See Exchange Act Section 21F(b)(1), 15 U.S.C. § 78u-6(b)(1); Exchange Act Rule 21F-3(a), 17 C.F.R. § 240.21F3(a). --- page 2 --- While both whistleblowers provided substantial assistance to the staff in the Division of Enforcement, Claimant 1’s information was more significant, as it alerted Commission staff to the fraudulent scheme, prompting the opening of the investigation. Claimant 1’s information also was more comprehensive, relating to the overall scheme, whereas Claimant 2’s information was more limited in nature and had less of an impact on the success of the enforcement action. As a result, a percent ( %) award to Claimant 1, and a percent ( %) award to Claimant 2 appropriately reflects their respective levels of contribution to the Covered Action. Accordingly, it is ORDERED that Claimant 1 shall receive an award of percent ( %) and Claimant 2 shall receive an award of percent ( %) of the monetary sanctions collected or to be collected in the Covered Action. By the Commission. Vanessa A. Countryman Secretary