In the Matter of the Claim for an Award
The SEC awarded a whistleblower nearly $4 million—representing a percentage of monetary sanctions—for providing original, extraordinary information that triggered and advanced an enforcement action under the Securities Exchange Act of 1934, despite redactions concealing the specific entity and nature of the fraud.
The U.S. Securities and Exchange Commission awarded a whistleblower nearly $4 million, representing a percentage of monetary sanctions collected in a covered enforcement action under the Securities Exchange Act of 1934. The claimant voluntarily provided original information, participated in over 125 emails and multiple interviews, submitted critical documents with contextual analysis, and identified key witnesses, while internally reporting misconduct at personal and professional risk. The Claims Review Staff’s recommendation was adopted as final, and three other claimants were denied awards without seeking reconsideration.
The U.S. Securities and Exchange Commission awarded a whistleblower nearly $4 million, representing a percentage of monetary sanctions collected in a covered enforcement action under the Securities Exchange Act of 1934. The claimant voluntarily provided original, high-quality information that directly caused the SEC to open an investigation and significantly advanced its enforcement efforts. Their extraordinary cooperation included more than 125 emails with Enforcement staff, extensive telephonic interviews, detailed explanations of complex documents, and the identification of critical witnesses. The claimant also took substantial personal and professional risks by raising concerns internally before approaching the SEC, demonstrating courage and commitment to accountability. The Claims Review Staff recommended the award, which the Commission adopted as final, while denying award applications from three other claimants who did not seek reconsideration. Although the specific entity, nature of the fraud, and total sanctions amount remain redacted, the order confirms the whistleblower’s pivotal role in uncovering violations of federal securities laws. This award underscores the SEC’s commitment to incentivizing insiders with credible, actionable information to combat financial misconduct.
Extracted insights
- $4.00M $4 million $1M–$10M
- person claims review staff
- person key witnesses
- agency original information to the sec
- agency secretary of the sec
- agency Securities and Exchange Commission
- Claimant receive whistleblower award of nearly $4 million
- Claimant provided original information to the SEC
- Claimant caused investigation to be opened
- Claimant participated in hours of telephonic interviews with Enforcement staff
- Claimant exchanged more than 125 emails with Enforcement staff
- Claimant provided documents to Enforcement staff
- Claimant identified key witnesses
- Claims Review Staff issued Preliminary Determination recommending whistleblower award
- SEC adopted recommendation of the Claims Review Staff
- Vanessa A. Countryman is Secretary of the SEC
UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 92210 / June 21, 2021 WHISTLEBLOWER AWARD PROCEEDING File No. 2021-61 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 nearly $4 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 caused an investigation to be opened and that led to the successful enforcement of the Covered Action. 2 Claimant provided extraordinary assistance to Enforcement staff, including: (1) participating in hours of telephonic interviews and exchanging more than 125 emails with staff; (2) providing documents and explaining their significance to staff; and (3) identifying key witnesses. Claimant also took personal and professional risks by raising concerns internally in an effort to remedy the misconduct. 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. 92210 / June 21, 2021 WHISTLEBLOWER AWARD PROCEEDING File No. 2021-61 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 nearly $4 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 caused an investigation to be opened and that led to the successful enforcement of the Covered Action. 2 Claimant provided extraordinary assistance to Enforcement staff, including: (1) participating in hours of telephonic interviews and exchanging more than 125 emails with staff; (2) providing documents and explaining their significance to staff; and (3) identifying key witnesses. Claimant also took personal and professional risks by raising concerns internally in an effort to remedy the misconduct. 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