SEC Whistleblower Awards Exceed $1 Billion
— Johnson Fistel, LLP (@JF_LLP) September 30, 2021
On September 24, 2021, the Securities and Exchange Commission (“SEC”) announced an approximately $36 million award to a whistleblower whose information led to successful enforcement actions by the SEC and another federal agency. This award comes less than two weeks after the SEC awarded another whistleblower $110 million—the agency’s second largest whistleblower award ever—and brings the total amount awarded under the whistleblower program to over $500 million in 2021. To date, the SEC has awarded approximately $1.1 billion to 214 individuals since issuing the first award in 2012.
Under the SEC’s whistleblower program, individuals who provide the SEC with original, timely, and credible information that leads to a successful enforcement action may be eligible for an award ranging from 10-30% of the money collected from the enforcement action if the monetary sanctions exceed $1 million. Moreover, individuals who provide critical information to other federal agencies may be eligible for a separate related action award so long as they are eligible for an SEC whistleblower award.
While the SEC is required by law to keep the identity of whistleblowers confidential and not disclose information that could lead to revealing their identity, it is important to hire an experienced law firm that knows how to protect your rights and represent your best interests if you are considering providing the SEC with valuable whistleblower information. Johnson Fistel LLP has a track record of successfully exposing federal securities laws violations and dishonest corporate executives and directors, all while maintaining complete client confidentiality.