SEC Awards $37 Million to Whistleblower for Revealing Employer Misconduct!

The U.S. Securities and Exchange Commission (SEC) has announced a notable award exceeding $37 million to a whistleblower whose contributions played a vital role in a successful enforcement action. This individual initially reported the wrongdoing internally, which led their employer to conduct an investigation and subsequently inform the SEC about the findings. This act of self-reporting prompted the SEC to initiate its own investigation.

As indicated in the SEC press release, the whistleblower’s ongoing and thorough assistance was essential for the SEC staff to grasp the full extent and particulars of the misconduct.

“Today’s whistleblower learned of misconduct and made the difficult decision to report their concerns. This individual, who was retaliated against for their whistleblowing activity, played a crucial role in the ultimate success of the enforcement proceeding,” stated Creola Kelly, Chief of the SEC’s Office of the Whistleblower.

The SEC’s whistleblower program is completely financed by monetary penalties imposed on violators of securities laws and is designed to safeguard investors by promoting the reporting of infractions. Whistleblowers are eligible to receive between 10% and 30% of the monetary penalties collected when they provide the SEC with original, timely, and credible information that results in enforcement actions with sanctions exceeding $1 million.

This significant reward underscores the SEC’s dedication to ensuring the protection and support of individuals who disclose crucial information about securities violations.