In the Matter of the Claims for Awards
The SEC awarded over $2.15 million to two whistleblowers—$2M+ to Claimant 1 for providing extensive, original information that initiated and advanced an enforcement action against a company for undisclosed misconduct, and $150K+ to Claimant 2 for limited information that expanded the investigation, though it did not support the charged conduct.
The SEC awarded Claimant 1 over $2 million and Claimant 2 over $150,000 in whistleblower payouts for providing original information that led to a successful enforcement action against a company for undisclosed misconduct. Claimant 1’s detailed submissions—including documents, interviews, and assistance identifying key actors and facilitating remediation—were critical to launching and advancing the investigation, conserving significant agency resources. Claimant 2’s information prompted an expansion of the probe but did not directly support the charged conduct, and they provided no further assistance after initial submission.
The SEC awarded a total of over $2.15 million to two whistleblowers for providing original information that led to a successful enforcement action against a company for undisclosed misconduct. Claimant 1 received over $2 million, representing a high percentage of the sanctions, for providing extensive, actionable information—including documents, participation in interviews, and assistance in identifying key individuals and entities involved in the misconduct. Their efforts not only initiated the investigation but also helped the SEC conserve time and resources and supported multiple remediation efforts within the company. Claimant 2 received over $150,000, representing a lower percentage, for information that alerted the SEC to additional potential wrongdoing and expanded the scope of the investigation, though their allegations did not directly support the conduct ultimately charged by the Commission. Claimant 2 provided no further assistance after their initial submission, and their contribution was deemed significantly more limited than Claimant 1’s. Neither claimant contested the Claims Review Staff’s preliminary determinations, which the SEC formally adopted, affirming the critical role of whistleblowers in uncovering corporate fraud.
Extracted insights
- $2.00M $2 million $1M–$10M
- $150K $150,000 $100K–$1M
- person claims review staff
- person covered action
- person enforcement staff
- person possible wrongdoing
- company potential misconduct by the company
- agency Securities and Exchange Commission
- company the company
- person whistleblower award claims
- Claimant 1 receive whistleblower award More than $2 million
- Claimant 2 receive whistleblower award More than $150,000
- Claimant 1 provided original information SEC
- Claimant 2 provided original information SEC
- Claimant 1's information led to successful enforcement Covered Action
- Claimant 2's information led to successful enforcement Covered Action
- Claimant 1 submitted information and documents Enforcement Staff
- Claimant 1 participated in interviews Enforcement Staff
- Claimant 1 helped identify key individuals and entities Investigation
- The Company engaged in misconduct <UNKNOWN>
- Claimant 1's information resulted in initiation Investigation into Company misconduct
- Claimant 2's information alerted Enforcement Staff Possible wrongdoing
- Enforcement Staff expanded investigation Potential misconduct by The Company
- Claims Review Staff issued Preliminary Determinations Whistleblower Award Claims
- SEC issued Release No. 92541 August 2, 2021
UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 92541 / August 2, 2021 WHISTLEBLOWER AWARD PROCEEDING File No. 2021-76 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: (i) (“Claimant 1”) receive a whistleblower award in the amount of percent ( %) of the monetary sanctions collected, or to be collected, in the abovereferenced Covered Action (the “Covered Action”); and (ii) (“Claimant 2”) receive a whistleblower award in the amount of percent ( %) of the monetary sanctions collected, or to be collected, in the Covered Action. This will result in awards of more than $2 million to Claimant 1 and more than $150,000 to Claimant 2. Claimant 1 and Claimant 2 provided written notice of their decisions not to contest the Preliminary Determinations. The recommendations of the CRS are adopted. The record demonstrates that Claimant 1 and Claimant 2 each voluntarily provided original information to the Commission, and each claimant’s original information led to the successful enforcement of the Covered Action. 1 With respect to Claimant 1, we note that: (i) Claimant 1’s information was significant, as it resulted in Enforcement staff initiating an investigation into misconduct that (“the Company”) engaged in in , and it ultimately led in part to the Covered Action; (ii) Claimant 1 submitted information and documents to Enforcement staff, participated in interviews with Enforcement staff, and helped Enforcement staff identify key individuals and entities involved in the investigation; (iii) Claimant 1’s information and assistance helped Enforcement staff focus its investigation into the Company’s conduct in and helped the Commission conserve significant time and resources; and (iv) Claimant 1 raised concerns multiple times at the Company in efforts to remedy the relevant misconduct. 2 With respect to Claimant 2, we note that: (i) Claimant 2’s information advanced the Covered Action in that it alerted Enforcement staff of possible wrongdoing occurring in , prompting Enforcement staff to expand its investigation into potential misconduct committed by the Company in ; (ii) Claimant 2’s specific allegations about certain actors who were later identified in the Covered Action were not part of the specific conduct charged by the Commission in the Covered Action; (iii) after submitting information, Claimant 2 did not provide additional information or assistance to Enforcement staff; and (iv) Claimant 2’s information was much more limited as compared to the information and assistance provided by Claimant 1 (whose information opened the investigation). Based on the facts and circumstances of this matter, we believe a % whistleblower award to Claimant 1 and a % whistleblower award to Claimant 2 would recognize the significance of Claimant 1’s and Claimant 2’s information and the high law enforcement interest involved in this matter. Accordingly, it is hereby ORDERED that Claimant 1 shall receive an award of percent ( %) of the monetary sanctions collected, or to be collected, in the Covered Action, and that Claimant 2 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. 92541 / August 2, 2021 WHISTLEBLOWER AWARD PROCEEDING File No. 2021-76 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: (i) (“Claimant 1”) receive a whistleblower award in the amount of percent ( %) of the monetary sanctions collected, or to be collected, in the abovereferenced Covered Action (the “Covered Action”); and (ii) (“Claimant 2”) receive a whistleblower award in the amount of percent ( %) of the monetary sanctions collected, or to be collected, in the Covered Action. This will result in awards of more than $2 million to Claimant 1 and more than $150,000 to Claimant 2. Claimant 1 and Claimant 2 provided written notice of their decisions not to contest the Preliminary Determinations. The recommendations of the CRS are adopted. The record demonstrates that Claimant 1 and Claimant 2 each voluntarily provided original information to the Commission, and each claimant’s original information led to the successful enforcement of the Covered Action. 1 With respect to Claimant 1, we note that: (i) Claimant 1’s information was significant, as it resulted in Enforcement staff initiating an investigation into misconduct that (“the Company”) engaged in in , and it ultimately led in part to the Covered Action; (ii) Claimant 1 submitted information and documents to Enforcement staff, participated in interviews with Enforcement staff, and helped Enforcement staff identify key individuals and entities involved in the investigation; (iii) Claimant 1’s information and assistance helped Enforcement staff focus its investigation into the Company’s conduct in and helped the Commission conserve significant time and resources; and (iv) Claimant 1 raised concerns multiple times at the Company in efforts to remedy the relevant misconduct. 2 With respect to Claimant 2, we note that: (i) Claimant 2’s information advanced the Covered Action in that it alerted Enforcement staff of possible wrongdoing occurring in , prompting Enforcement staff to expand its investigation into potential misconduct committed by the Company in ; (ii) Claimant 2’s specific allegations about certain actors who were later identified in the Covered Action were not part of the specific conduct charged by the Commission in the Covered Action; (iii) after submitting information, Claimant 2 did not provide additional information or assistance to Enforcement staff; and (iv) Claimant 2’s information was much more limited as compared to the information and assistance provided by Claimant 1 (whose information opened the investigation). Based on the facts and circumstances of this matter, we believe a % whistleblower award to Claimant 1 and a % whistleblower award to Claimant 2 would recognize the significance of Claimant 1’s and Claimant 2’s information and the high law enforcement interest involved in this matter. Accordingly, it is hereby ORDERED that Claimant 1 shall receive an award of percent ( %) of the monetary sanctions collected, or to be collected, in the Covered Action, and that Claimant 2 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