The SEC has made two new whistleblower awards during the last few days, worth over $122m in total.
On August 23, two whistleblowers were awarded more than $98m for their information and assistance which led to an SEC enforcement action and another action by different agency.
The first whistleblower received $82m after providing a tip which prompted the opening of the investigations, and provided “critical additional information and ongoing assistance.”
“The information would have been difficult to obtain in the absence of the whistleblowers as it pertained to conduct occurring abroad.”
Creola Kelly, Chief of the SEC’s Office of the Whistleblower.
The second one was awarded $16m after providing information which notably contributed to one part of the actions.
“Without these whistleblowers’ information, the violations would have been difficult to detect,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower.
Conduct occurring abroad
The second award for August was made out on the 26th, where $24m was issued to two other whistleblowers whose information and help also led to one SEC enforcement action and action by another agency.
Even though the first whistleblower’s information led to the opening of the investigation, a large portion of the award went to the second whistleblower. According to the SEC, the second individual provided “information and substantial cooperation proved critical to the success of the actions,” and was therefore awarded $20m.
These “awards highlight the incredible public service provided by whistleblowers,” said Kelly. “The information would have been difficult to obtain in the absence of the whistleblowers as it pertained to conduct occurring abroad.”
Awards of $196m in 2024
During 2024, the SEC has made four whistleblower awards, worth $196m in total.
The first award was made out on July 17, where one individual was awarded more than $37m. The SEC said that the whistleblower, previously unknown to the Commission, “significantly contributed” to a successful enforcement action.
The whistleblower also helped speed up the investigation by assisting enforcement staff by identifying potential witnesses and documents.
The second one was issued on July 26, where the assistance and information of one individual led to a successful SEC enforcement action, and was awarded $37m for that.
In this case, the whistleblower first reported the misconduct internally, which made the employer commence its own investigation, and later notify the SEC about the findings. The Commission started its own investigation, and said that without the whistleblowers “ongoing, extensive, and timely assistance,“ it would have not learned all about the employer’s misconduct.
“This individual, who was retaliated against for their whistleblowing activity, played a crucial role in the ultimate success of the enforcement proceeding,” Kelly added.
Over $2 billion in awards
Since issuing its first award in 2012, the SEC has now awarded more than $2.1 billion to whistleblowers. The highest total of whistleblower awards was made in 2023, where $501m was issued in relation to nine successful SEC enforcement and other related actions.
Most enforcement actions related to whistleblower tips took place in 2021, where over 50 actions were undertaken and more than $453m awarded to whistleblowers.