In the Matter of the Claim for an Award
A whistleblower received a $2.2 million SEC award, representing a percentage of monetary sanctions, for providing original, high-quality information that enabled efficient enforcement, led to millions in client recoveries, and was preceded by internal reporting despite personal and professional risks.
The SEC awarded a whistleblower approximately $2.2 million, representing a percentage of monetary sanctions collected in a covered enforcement action, under Rule 21F-3. The claimant provided original information of such high quality that SEC staff drafted document requests without needing to contact them, and their disclosures helped recover millions for harmed clients. The claimant also faced personal and professional risks by raising concerns internally before reporting to the SEC, while two other claimants were denied awards and did not seek reconsideration.
The U.S. Securities and Exchange Commission (SEC) awarded a whistleblower approximately $2.2 million, representing a percentage of monetary sanctions collected in a covered enforcement action, after determining the claimant’s information was original, voluntary, and significantly contributed to the success of the case. The whistleblower’s submission was so precise and detailed that SEC staff were able to draft document requests directly from it without needing to follow up, accelerating the investigation. In addition to aiding the SEC, the whistleblower’s actions helped cause the return of millions of dollars to clients harmed by the misconduct. The claimant took substantial personal and professional risks by first attempting to remedy the wrongdoing internally before reporting to the SEC. Two other claimants applied for awards but were denied, and neither sought reconsideration, making the preliminary determination final under Rule 21F-10(f). The SEC formally adopted the Claims Review Staff’s recommendation, affirming the award as justified under Section 21F(b)(1) of the Exchange Act. The details of the underlying misconduct and the entity involved remain redacted in the public record.
Extracted insights
- $2.20M $2.2 million $1M–$10M
- person claims review staff
- agency original information to sec
- agency Securities and Exchange Commission
- Claimant receive Whistleblower Award Of Approximately $2.2 Million
- Claimant provided Original Information To SEC
- Claimant's Information contributed to Successful Enforcement Of Covered Action
- Claimant took Personal And Professional Risks By Raising Concerns Internally
- Claimant's Information helped cause Return Of Millions Of Dollars To Harmed Clients
- Claims Review Staff recommended Whistleblower Award Of Approximately $2.2 Million For Claimant
- SEC issued Order Determining Whistleblower Award Claim On February 19, 2021
UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 91163 / February 19, 2021 WHISTLEBLOWER AWARD PROCEEDING File No. 2021-25 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 approximately $2.2 million, which represents percent ( %) of the monetary sanctions collected, or to be collected, in the above-referenced Covered Action (the “Covered Action”). 1 Claimant provided written notice of Claimant’s decision not to contest the Preliminary Determination. The recommendation of the CRS is adopted. The record demonstrates that Claimant voluntarily provided original information to the Commission that significantly contributed to the successful enforcement of the Covered Action. 2 The information in Claimant’s submission was of such high quality that staff was able to draft document requests based on Claimant’s information without speaking with Claimant. In addition, Claimant took personal and professional risks by raising concerns internally in an effort to remedy the misconduct, and Claimant’s information helped cause the return of millions of dollars to harmed clients. 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. 91163 / February 19, 2021 WHISTLEBLOWER AWARD PROCEEDING File No. 2021-25 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 approximately $2.2 million, which represents percent ( %) of the monetary sanctions collected, or to be collected, in the above-referenced Covered Action (the “Covered Action”). 1 Claimant provided written notice of Claimant’s decision not to contest the Preliminary Determination. The recommendation of the CRS is adopted. The record demonstrates that Claimant voluntarily provided original information to the Commission that significantly contributed to the successful enforcement of the Covered Action. 2 The information in Claimant’s submission was of such high quality that staff was able to draft document requests based on Claimant’s information without speaking with Claimant. In addition, Claimant took personal and professional risks by raising concerns internally in an effort to remedy the misconduct, and Claimant’s information helped cause the return of millions of dollars to harmed clients. 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