SEC Awards More Than $28 Million to Whistleblower Who Aided SEC and Other Agency Actions
A whistleblower received over $28 million from the SEC for providing original, credible information that triggered successful enforcement actions by the SEC and another federal agency, leading to monetary sanctions exceeding $1 million under the Dodd-Frank Act’s whistleblower program.
The SEC awarded a whistleblower more than $28 million for information that led to enforcement actions by both the SEC and another federal agency, resulting in significant monetary sanctions exceeding $1 million. The award, calculated at 10% to 30% of the collected penalties, is funded entirely by sanctions paid by securities law violators, not by harmed investors. This payment is part of the SEC’s whistleblower program, which has distributed approximately $901 million to 163 individuals since its inception in 2012, with strict confidentiality guaranteed under the Dodd-Frank Act.
The SEC announced a whistleblower award of more than $28 million for original, timely, and credible information that prompted joint investigations by the SEC and another federal agency, resulting in significant enforcement actions and substantial monetary sanctions. Although the specific defendants or nature of the fraud were not disclosed, the sanctions collected exceeded $1 million, qualifying the whistleblower for an award between 10% and 30% of the total recovery. This payout is funded exclusively by penalties paid by securities law violators, with no funds taken from harmed investors, as mandated by Congress through the investor protection fund. Since 2012, the SEC’s whistleblower program has awarded approximately $901 million to 163 individuals, underscoring its effectiveness in incentivizing insider reporting. The Dodd-Frank Act ensures the confidentiality of whistleblowers, protecting their identities throughout the process. The award reflects the program’s success in leveraging external tips to uncover complex violations and expand enforcement reach across federal agencies. This case also demonstrates the program’s unique structure, allowing eligibility for awards in related actions by other agencies when the whistleblower’s information is pivotal to both investigations. The SEC continues to emphasize the program’s vitality, as evidenced by nearly $85 million in awards issued to nine individuals in the same month.
Exhibits & Attached Documents (1)
Extracted insights
- $901.00M $901 million $100M–$1B
- $900.00M $900 million $100M–$1B
- $85.00M $85 million $10M–$100M
- $28.00M $28 million $10M–$100M
- $1.00M $1 million $1M–$10M
- agency acting chief of sec's office of the whistleblower
- person emily pasquinelli
- agency monetary sanctions to sec
- agency sec and other federal agency to open investigations
- agency Securities and Exchange Commission
- person securities law violators
- person whistleblower awards
- SEC announced award to whistleblower totaling more than $28 million
- Whistleblower caused SEC and other federal agency to open investigations
- SEC awarded more than $900 million over life of program
- SEC awarded almost $85 million to nine individuals this month
- SEC awarded approximately $901 million to 163 individuals since 2012
- Emily Pasquinelli is Acting Chief of SEC's Office of the Whistleblower
- Congress established investor protection fund for whistleblower awards
- Securities law violators paid monetary sanctions to SEC
- Whistleblower awards range from 10 percent to 30 percent of money collected
- Dodd-Frank Act requires SEC to protect confidentiality of whistleblowers
- SEC issued first whistleblower award in 2012
The Securities and Exchange Commission today announced an award to a whistleblower totaling more than $28 million in connection with an SEC enforcement action and a related action by another federal agency. The whistleblower’s information caused both the SEC and the other agency to open investigations that resulted in significant enforcement actions. Under the SEC’s whistleblower program, individuals who provide information to other agencies like this whistleblower may be eligible for an award in the related action if they are also eligible for an award in the underlying SEC action. “The SEC has awarded more than $900 million over the life of the program, including almost $85 million to nine individuals in this month alone, which reflects the vitality and continued success of the SEC’s whistleblower program,” said Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower. The SEC has awarded approximately $901 million to 163 individuals since issuing its first award in 2012. All payments are made out of an investor protection fund established by Congress that 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 whistleblower awards. Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action. Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million. As set forth in the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers and does not disclose any information that could reveal a whistleblower’s identity. For more information about the whistleblower program and how to report a tip, visit www.sec.gov/whistleblower.
The Securities and Exchange Commission today announced an award to a whistleblower totaling more than $28 million in connection with an SEC enforcement action and a related action by another federal agency. The whistleblower’s information caused both the SEC and the other agency to open investigations that resulted in significant enforcement actions. Under the SEC’s whistleblower program, individuals who provide information to other agencies like this whistleblower may be eligible for an award in the related action if they are also eligible for an award in the underlying SEC action. “The SEC has awarded more than $900 million over the life of the program, including almost $85 million to nine individuals in this month alone, which reflects the vitality and continued success of the SEC’s whistleblower program,” said Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower. The SEC has awarded approximately $901 million to 163 individuals since issuing its first award in 2012. All payments are made out of an investor protection fund established by Congress that 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 whistleblower awards. Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action. Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million. As set forth in the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers and does not disclose any information that could reveal a whistleblower’s identity. For more information about the whistleblower program and how to report a tip, visit www.sec.gov/whistleblower.