A whistleblower has been awarded nearly $279m for assisting the SEC by bringing information and assistance that led to one successful SEC enforcement action, plus related actions. Creola Kelly, Chief of the SEC’s Office of the Whistleblower, said that the whistleblower’s assistance, which included multiple interviews and written submissions, was critical to the success of these actions. “While the whistleblower’s information did not prompt the opening of the Commission’s investigation, their information expanded the scope of misconduct charged,” said Kelly.

“The size of today’s award – the highest in our program’s history – not only incentivizes whistleblowers to come forward with accurate information about potential securities law violations, but also reflects the tremendous success of our whistleblower program,” said Gurbir S Grewal, Director of the SEC’s Division of Enforcement.

This is the Commission’s highest-ever award, more than double the previous largest award of $114m which was issued in October 2020.

“This success directly benefits investors, as whistleblower tips have contributed to enforcement actions resulting in orders requiring bad actors to disgorge more than $4bn in ill-gotten gains and interest. As this award shows, there is a significant incentive for whistleblowers to come forward with accurate information about potential securities law violations,” added Grewal.

$342m in 2023

This is the fifth whistleblower award of 2023, and contributes to a total of $342m awarded so far this year:

• March 31 – More than $12m to two whistleblowers – one successful SEC enforcement action.
• January 24 – More than $28m to two whistleblowers – one successful SEC enforcement action.
• January 19 – Three awards totaling approximately $18m to three whistleblowers – one successful SEC enforcement action.
• January 13 ­– More than $5m to one whistleblower – one successful SEC enforcement action.

Since the first whistleblowing award in 2012, the SEC has awarded out more than $1,730bn to whistleblowers.

Investor protection fund

The awards can range from 10% to 30% of the money collected when the monetary sanctions exceed $1m. The money is taken out of an investor protection fund established by Congress, which is financed entirely through monetary sanctions paid to the SEC by securities law violators.

No money has ever been taken or withheld from harmed investors to pay a whistleblower award.