In the Matter of the Claim for an Award
A whistleblower received over $1.2 million from the SEC for voluntarily providing original information that led to a successful enforcement action, after internally reporting the misconduct and waiting over 120 days before filing a Form TCR, though the specific fraud and respondent remain redacted.
The SEC awarded a whistleblower more than $1.2 million, representing a percentage of monetary sanctions collected in a redacted covered action, for providing original, voluntary information that triggered a new investigation. The claimant satisfied eligibility requirements under Rule 21F-4(b)(4)(v)(C) by first reporting the misconduct to their supervisor and waiting over 120 days before submitting a Form TCR to the Commission. The whistleblower’s cooperation—including supplying documents and testimony—significantly aided the SEC’s enforcement efforts, leading to the adoption of the Claims Review Staff’s preliminary award recommendation.
The U.S. Securities and Exchange Commission (SEC) granted a whistleblower an award of more than $1.2 million, representing a percentage of monetary sanctions collected in a redacted enforcement action, for providing original, voluntary information that led to a successful investigation. The claimant first reported the underlying misconduct to their internal supervisor and waited at least 120 days before filing a Form TCR with the SEC, thereby satisfying the regulatory conditions under Rule 21F-4(b)(4)(v)(C) for award eligibility. The whistleblower’s information prompted the opening of a new investigation, and their subsequent cooperation—including providing critical documents and participating in a voluntary interview—saved the SEC substantial time and resources. Although the specific nature of the securities law violations and the identity of the respondent are redacted, the SEC confirmed that all statutory criteria under Section 21F of the Securities Exchange Act of 1934 were met. The award was finalized after the Commission adopted the preliminary recommendation of the Claims Review Staff. No charges or defendants are named in the order, and the covered action’s details remain confidential due to redactions. The decision underscores the SEC’s commitment to incentivizing internal reporting and timely disclosure to regulators.
Extracted insights
- $1.20M $1.2 million $1M–$10M
- The Claims Review Staff issued a Preliminary Determination recommending Claimant receive a whistleblower award of more than $1.2 million
- The Claims Review Staff recommended Claimant receive a whistleblower award of more than $1.2 million
- The recommendation of the CRS is adopted the record demonstrates that Claimant voluntarily provided original information to the Commission that led to the successful enforcement of the Covered Action
- Claimant voluntarily provided original information to the Commission
- Claimant led to the successful enforcement of the Covered Action
- Claimant first reported the underlying information to Claimant’s supervisor
- Claimant waited at least 120 days before filing a Form TCR with the Commission
- The Commission considered Claimant alerted the Commission to the securities law violations prompting the opening of a new investigation into the alleged conduct
- Claimant participated in a voluntary interview with Commission staff
- Claimant provided documents and additional information that assisted the staff in its investigation
- Claimant saved Commission time and resources
- The Commission ORDERED Claimant shall receive an award of percent ( ) of the monetary sanctions collected or to be collected in the Covered Action
UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 92411 / July 15, 2021 WHISTLEBLOWER AWARD PROCEEDING File No. 2021-71 In the Matter of the Claim for an Award in connection with Notice of Covered Action ORDER DETERMINING WHISTLEBLOWER AWARD CLAIM The Claims Review Staff (“CRS”) issued a Preliminary Determination recommending that (“Claimant”) receive a whistleblower award of more than $1.2 million, which represents percent (%) of the monetary sanctions collected, or to be collected, in the above-referenced Covered Action (the “Covered Action”). 1 The recommendation of the CRS is adopted. The record demonstrates that Claimant voluntarily provided original information to the Commission that led to the successful enforcement of the Covered Action. 2 In reaching this determination, the Commission considered that Claimant alerted the Commission to the securities law violations prompting the opening of a new investigation into the alleged conduct, participated in a voluntary interview with Commission staff, and provided documents and additional information that assisted the staff in its investigation, saving Commission time and resources. Accordingly, it is hereby ORDERED that Claimant 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. 92411 / July 15, 2021 WHISTLEBLOWER AWARD PROCEEDING File No. 2021-71 In the Matter of the Claim for an Award in connection with Notice of Covered Action ORDER DETERMINING WHISTLEBLOWER AWARD CLAIM The Claims Review Staff (“CRS”) issued a Preliminary Determination recommending that (“Claimant”) receive a whistleblower award of more than $1.2 million, which represents percent (%) of the monetary sanctions collected, or to be collected, in the above-referenced Covered Action (the “Covered Action”). 1 The recommendation of the CRS is adopted. The record demonstrates that Claimant voluntarily provided original information to the Commission that led to the successful enforcement of the Covered Action. 2 In reaching this determination, the Commission considered that Claimant alerted the Commission to the securities law violations prompting the opening of a new investigation into the alleged conduct, participated in a voluntary interview with Commission staff, and provided documents and additional information that assisted the staff in its investigation, saving Commission time and resources. Accordingly, it is hereby ORDERED that Claimant 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