SEC Awards More Than $55 Million To Whistleblowers Across Several Enforcement Actions
Within the last few weeks, the Securities and Exchange Commission (SEC) has awarded tens of millions in financial compensation to several whistleblowers. Under federal law, the securities regulator can grant a financial award valued at between 10 percent and 30 percent of the ultimate recovery when it brings successful enforcement action based on the disclosure made by a whistleblower. In this blog post, our Miami investment fraud lawyers highlight the latest round of awards issued by the agency.
Whistleblower Award: $22 Million to Two Securities Professionals
On May 10th, 2021, the SEC awarded $22 million in whistleblower compensation to two securities industry insiders. One individual was granted an $18 million award and the other was granted a $4 million award. The first whistleblower received a significantly larger share of the compensation on the grounds that the individual provided the initial information to spur an investigation. The second individual also made important contributions in providing supplemental information at a later date. The SEC puts a strong value on early action by whistleblowers. The agency also puts a strong value on new information that would be difficult or impossible to discover without a whistleblower.
Whistleblower Award: $3.6 Million to a Securities Industry Insider
On May 12th, 2021, the SEC awarded $3.6 million in whistleblower compensation to a person who voluntarily came forward and provided information that the agency used to take successful enforcement action to protect investors. Notably, in this case, the information provided helped to launch the investigation in the first place. The award reflects the amount of financial damages that the agency was able to recover for investors as part of its enforcement action.
Whistleblower Award: $31 Million to Four Individuals in the Industry
On May 17th, 2021, the SEC awarded $31 million in whistleblower compensation to four individuals across two different (but related) enforcement actions. In the first case, the agency granted $27 million in financial compensation to two whistleblowers. The agency notes that the individuals in question not only provided new information to the federal government, but that the whistleblower sat with SEC representatives for several days to help them put the information into the proper context.
In the second case, one whistleblower was awarded $3.75 million and another was awarded $750,000 for their efforts to help the agency bring a halt to securities misconduct. The two whistleblowers brought their information independently to the agency. One individual received a large share compensation because the SEC deemed their disclosures to be more important.
Schedule a Completely Private Consultation with a Florida SEC Whistleblower Lawyer
At Carlson & Associates, P.A., we have the securities law expertise and real world experience to protect the rights of whistleblowers. Our attorneys will help you make a fully confidential disclosure to the SEC and maximize your financial award. Call our Miami law office now to set up a fully private case with a skilled securities law whistleblower attorney.