SEC Grants More Than $40 Million In Compensation To Four Whistleblowers
On January 21st, 2022, the Securities and Exchange Commission (SEC) announced that the federal government has granted $40 million in financial compensation to four different whistleblowers. The whistleblower awards were paid as part of three separate actions by the SEC. Through the SEC’s confidential whistleblower program, the federal government has now granted a total of $1.2 billion in compensation to 245 different whistleblowers. In this post, our Miami investment fraud lawyers offer a more detailed analysis of the most recent whistleblower awards issued by the SEC.
First SEC Whistleblower Order: $37 Million in Compensation to Two Whistleblowers
The first SEC whistleblower order was issued in regards to disclosures made collectively by two separate individuals. The individuals provided key information that helped the SEC take successful enforcement action to stop securities fraud. Notably, the SEC commended these whistleblowers for working with the agency to provide ongoing assistance and follow-up information. Based on the total amount of money recovered on behalf of investors and the extent of the contributions made by the whistleblowers, they were awarded joint whistleblower compensation of $37 million.
Second SEC Whistleblower Order: $1.8 Million in Compensation to a Whistleblower
In the second order announced by the Securities and Exchange Commission, $1.8 million in financial compensation was awarded to a single whistleblower. This award relates to a wholly separate securities fraud case. According to the agency, the whistleblower provided important and novel information that prompted regulators to initiate an investigation into securities law violations. Further, follow-up information and ongoing assistance was provided.
Third SEC Whistleblower Order: $1.5 Million in Compensation to a Whistleblower
The third SEC whistleblower order is also related to a separate investigation. In this case, the SEC notes that the investigation into alleged misconduct was already underway. However, the anonymous individual in question voluntarily provided new information that both shaped the federal agency’s strategy and allowed it to complete the investigation and take enforcement action. Based on the contributions and the scope of the case, $1.5 million in whistleblower compensation was awarded.
Whistleblower Compensation is 10 to 30 Percent of Amount Recovered
SEC whistleblowers are entitled to recover financial compensation in the form of a whistleblower award worth between 10 percent and 30 percent of the scope of the underlying enforcement action. The SEC has discretion within that range. The greater the SEC deems a whistleblower’s contributions, the higher the percentage of the whistleblower award.
Schedule a Fully Private Consultation With a South Florida SEC Whistleblower Lawyer
At Carlson & Associates, P.A., our Miami, FL securities law whistleblower attorneys are devoted to helping our clients secure the maximum amount of financial compensation through the SEC. If you are considering disclosing information to the SEC, our firm will protect your rights. Call us now for a strictly private review of your case. We represent whistleblowers who are making confidential disclosures through the SEC whistleblower claims process in Miami, South Florida, and beyond.