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SEC Awards More than $4.1 Million in Whistleblower Compensation Across Three Different Cases

Within the last four weeks, the Securities and Exchange Commission (SEC) has issued whistleblower awards to four individuals across three different legal matters. Since the program was created in 2010, the agency has now awarded more than $398 million in compensation to nearly 80 different people. Below, our South Florida SEC whistleblower lawyers highlight the latest whistleblower awards from the top federal securities regulator.

SEC Whistleblower Award #1: $2 Million to One Person  

On April 3rd, the Securities and Exchange Commission (SEC) announced the award of $2 million in financial compensation to a securities industry insider who came forward and provided critically important information. Regulators noted that the agency would have had immense trouble obtaining the information if the whistleblower never came forward.

Without the disclosure, enforcement action may not have been possible. In its award, regulators described the disclosures as being both “expeditious” and “extraordinary”—thereby qualifying the individual for a significant award. As with other SEC whistleblower cases, key details are not being disclosed to the public in order to protect the anonymity of the person who came forward.

SEC Whistleblower Award #2: $450,000 to One Person  

On March 30th, the Securities and Exchange Commission (SEC) announced that $450,000 was being awarded to an individual who came forward and provided key information that both halted investment fraud and, eventually, led to the preparator being charged. According to the press release, this whistleblower had “compliance-related” responsibilities. This marks the fourth time a compliance/audit employee has received whistleblower compensation through the SEC.

In this case, the individual first reported their concerns internally. However, after waiting the standard 120 days, they recognized that the matter was not being addressed. The compliance professional then made a disclosure to the federal officials. The agency called the individual’s attempt to handle the matter internally “reasonable” and stated that they provided “meaningful assistance.”  

SEC Whistleblower Award #3: $570,000, Split By Two People  

On March 24th, the Securities and Exchange Commission (SEC) announced the awarding of more than $570,000 in whistleblower compensation to two people—with one individual receiving $478,000 and the other receiving $98,000. In this case, the whistleblowers played a key role in halting investment fraud and allowing the agency to enforce federal securities law. Notably, the substantially higher award issued to one of the two individuals reflects the fact that this person came forward earlier in the process. By doing so, the agency was better able to protect investor rights. Early disclosures may entitled whistleblowers to increase compensation. 

Call Our South Florida SEC Whistleblower Lawyer for Help

At ​Carlson & Associates, P.A., our Miami investment fraud attorneys are standing by, ready to help you make a protected disclosure. Our team has the experience to handle these complex matters. We will make sure that your confidentiality is preserved. For a completely private, no obligation consultation, please call us now. With an office in Miami, we represent securities industry whistleblowers throughout Florida.

Resources:

sec.gov/news/press-release/2020-80

sec.gov/news/press-release/2020-71

sec.gov/news/press-release/2020-75

https://www.carlson-law.net/sec-charges-florida-resident-in-connection-with-a-26-million-investment-fraud-scheme/

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