The Securities and Exchange Commission (SEC) has awarded a whistleblower $20m for providing new and critical information that led to the success of an enforcement action.

This is the largest amount awarded to a single whistleblower this year. The largest sum in total went to four whistleblowers in January, who were awarded more than $40m after providing information and assistance in three separate covered actions.

In this case, the SEC found that the whistleblower provided both significant information and was assisting the Enforcement Division staff, which made it possible to more quickly and efficiently investigate complex issues.

“Today’s whistleblower played a crucial role in the ultimate success of the enforcement proceeding,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower. “Whistleblowers can help advance existing investigations in meaningful ways when their information saves the agency time and resources, and when their contributions allow SEC staff to better understand complicated issues.”

$157m in 2022

Since the first whistleblowing award in 2012, the SEC has awarded more than $1.3bn to 283 individuals. During 2022, the regulator awarded over $157.25m to whistleblowers in 21 successful actions, including one related action.

All awards to whistleblowers are made 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 been taken or withheld from harmed investors to pay whistleblowers.