Mar 31, 2023
Two Whistleblowers Will Share $12 Million in Awards for SEC Tips
(Bloomberg) -- Two whistleblowers will share more than $12 million for their help in a successful Securities and Exchange Commission enforcement action, the regulator announced Friday.
The first of the two whistleblowers will receive more than $9 million, as the person sparked the investigation, identified witnesses and made “persistent efforts” to remedy the issues, according to a statement from the regulator. The second individual will get more than $3 million for submitting “important” new information.
“The information and assistance provided by these two whistleblowers in helping to identify complex wrongdoing demonstrates the importance of the whistleblower program to the SEC’s enforcement efforts,” Creola Kelly, head of the agency’s whistleblower office, said in the statement.
Neither the enforcement action nor the identities of the whistleblowers were disclosed, following agency policy. The program was established by the 2010 Dodd-Frank Act to organize and provide incentives to tipsters.
Whistleblowers can receive between 10% to 30% of the amount collected in penalties in successful enforcement cases where fines exceed more than $1 million. The SEC has paid out over $1 billion in awards since the program’s inception.
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