In the Matter of the Claim for an Award
The SEC awarded a whistleblower approximately $2.5 million—representing a percentage of monetary sanctions—for providing original, credible information that led to an enforcement action against a party for breaching fiduciary duties to investors, after voluntarily reporting internally and providing substantial ongoing assistance.
The SEC awarded a whistleblower approximately $2.5 million, representing a percentage of monetary sanctions collected or to be collected in a single covered action involving a breach of fiduciary duty to investors. The whistleblower voluntarily reported the misconduct internally before contacting the SEC and provided critical ongoing assistance, including testimony and documentation, which enabled the Commission to pursue enforcement. The Commission treated related judicial and administrative actions as one covered action under Rule 21F-4(d)(1), and no other claimants contested their denials, allowing the Preliminary Determination to become final.
The SEC awarded a whistleblower approximately $2.5 million, representing a percentage of monetary sanctions collected or to be collected in a covered action involving a breach of fiduciary duty owed to investors. The whistleblower voluntarily reported the misconduct internally before providing original, credible information to the Commission, which directly led to the successful enforcement action. The whistleblower provided substantial ongoing assistance, including meetings, testimony, and documentation that were key to the case. The Commission treated related judicial and administrative actions as a single covered action under Rule 21F-4(d)(1), consolidating sanctions for award purposes. The award was justified based on the significance of the information, the law enforcement interest in stopping ongoing securities violations, and the whistleblower’s cooperation. No other claimants sought reconsideration of their denials, and the whistleblower did not contest the Preliminary Determination, resulting in its adoption as final. The exact percentage of the award and the identity of the respondent remain redacted.
Extracted insights
- $2.50M $2.5 million $1M–$10M
- person claims review staff
- company company
- agency original information to sec leading to successful enforcement
- agency secretary of sec
- agency sec to bring action against defendant for breach of fiduciary duty
- agency Securities and Exchange Commission
- Claimant receive Whistleblower Award Of Approximately $2.5 Million
- Claims Review Staff issued Preliminary Determination Recommending Whistleblower Award
- Claimant provided Original Information To SEC Leading To Successful Enforcement
- SEC adopted Recommendation Of Claims Review Staff
- Claimant reported internally to Company
- Claimant provided Significant Ongoing Assistance To Enforcement Staff
- Claimant's Information allowed SEC To Bring Action Against Defendant For Breach Of Fiduciary Duty
- SEC issued Securities Exchange Act Release No. 91520 On April 9, 2021
- Vanessa A. Countryman signed as Secretary Of SEC
UNITED STATES OF AMERICA before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 91520 / April 9, 2021 WHISTLEBLOWER AWARD PROCEEDING F ile No. 2021 37 In the Mat ter of the Claim for an Award in connection with Notice of Covered Action Redacted Redacted Redacted ORDER DETERMINING WHISTLEBLOWER AWARD CLAIM The Claims Review Staff (“CRS”) issued a Preliminary Determination recommending that (“Claimant”) receive a whistleblower award in the amount of approximately $2.5 million, which equals percent ( %) of the monetary sanctions collected, or to be collected, in 1 Claimant provided written notice stating that Claimant will not contest the Preliminary Determination. 2 Redacted Redacted Redacted Redacted ****** 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. 3 1 For the purposes of making an award, we determined to treat the judicial and administrative actions in this matter as a single Covered Action because they arose out the same nucleus of operative facts. See Securities Exchange Act of 1934 (“Exchange Act”) Rule 21F-4(d)(1), 17 C.F.R. § 240.21F-4(d)(1). 2 An additional claimant on the matter did not seek reconsideration of their denial and, as such, the Preliminary Determination with respect to their claim became the Final Order of the Commission, pursuant to Exchange Act Rule 21F-10. 3 See Exchange Act Section 21F(b)(1), 15 U.S.C. § 78u-6(b)(1); Rule 21F-3(a), 17 C.F.R. § 240.21F-3(a). Redacted Redacted Redacted Redacted Redacted Redacted Redacted Redacted Redacted Redacted Redacted Redacted Redacted Redacted Redacted In reaching this determination, the Commission considered that: (i) Claimant provided significant ongoing assistance to Enforcement staff, including by meeting with and providing RedactedRedacted key to Enforcement staff in support of the case; (ii) there is substantial law enforcement interest here as Claimant’s information allowed the Commission to bring an action against Redacted engaging in an ongoing violation of the federal securities laws relating to the breach of fiduciary duty owed to investors; and (iii) Claimant reported internally to the company. 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 Redacted Redacted Redacted
UNITED STATES OF AMERICA before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 91520 / April 9, 2021 WHISTLEBLOWER AWARD PROCEEDING File No. 2021 37 In the Matter of the Claim for an Award in connection with Notice of Covered Action Redacted Redacted Redacted ORDER DETERMINING WHISTLEBLOWER AWARD CLAIM The Claims Review Staff (“CRS”) issued a Preliminary Determination recommending that (“Claimant”) receive a whistleblower award in the amount of approximately $2.5 million, which equals percent ( %) of the monetary sanctions collected, or to be collected, in 1 Claimant provided written notice stating that Claimant will not contest the Preliminary Determination.2 Redacted Redacted Redacted Redacted *** *** 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.3 1 For the purposes of making an award, we determined to treat the judicial and administrative actions in this matter as a single Covered Action because they arose out the same nucleus of operative facts. See Securities Exchange Act of 1934 (“Exchange Act”) Rule 21F-4(d)(1), 17 C.F.R. § 240.21F-4(d)(1). 2 An additional claimant on the matter did not seek reconsideration of their denial and, as such, the Preliminary Determination with respect to their claim became the Final Order of the Commission, pursuant to Exchange Act Rule 21F-10. 3 See Exchange Act Section 21F(b)(1), 15 U.S.C. § 78u-6(b)(1); Rule 21F-3(a), 17 C.F.R. § 240.21F-3(a). Redacted Redacted Redacted Redacted Redacted Redacted Redacted Redacted Redacted Redacted Redacted Redacted Redacted Redacted Redacted In reaching this determination, the Commission considered that: (i) Claimant provided significant ongoing assistance to Enforcement staff, including by meeting with and providing Redacted Redacted key to Enforcement staff in support of the case; (ii) there is substantial law enforcement interest here as Claimant’s information allowed the Commission to bring an action against Redacted engaging in an ongoing violation of the federal securities laws relating to the breach of fiduciary duty owed to investors; and (iii) Claimant reported internally to the company. 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 Redacted Redacted Redacted