SEC Awards Whistleblower a Bounty of More Than $37 Million

On July 26, 2024, the Securities and Exchange Commission (SEC) announced an award of more than $37 million to a whistleblower whose information and assistance led to a successful SEC enforcement action.

The whistleblower persisted in reporting the misconduct internally, which led the employer to conduct its own investigation and eventually report the results to the Commission. This self-report caused an SEC investigation. Further, without the SEC whistleblower’s ongoing, extensive, and timely assistance, the SEC staff would not have learned the full context and extent of the employer’s misconduct.

“Today’s SEC 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,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower.

Payments to SEC 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. SEC Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action. SEC Whistleblower awards can range from 10 to 30 percent of the money collected when the monetary sanctions exceed $1 million.

As set forth in the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers when possible and does not disclose any information that could reveal a whistleblower’s identity. SEC Whistleblower actions under the Dodd-Frank Act involve a variety of SEC violations, including ponzi schemes, toxic lenders acting as unregistered dealers, securities fraud, unregistered securities and other violations.

For more information about the whistleblower program and how to report a tip, visit www.sec.gov/whistleblower.

Do you have original information that could help the SEC recover funds for fraud victims that you’d like to submit as a whistleblower? We’d love to hear from you.

Brenda Hamilton is a practicing securities attorney with more than 20 years of experience, recognized as an expert in securities and forensic law. Ms. Hamilton has represented investors, issuers and other victims of fraud in securities and white-collar matters, including several DOJ referrals and whistleblower submissions, some of which have resulted in whistleblower awards.

For further information about this securities law blog, please contact Brenda Hamilton, Securities Attorney, at 200 E. Palmetto Park Rd, Suite 103, Boca Raton, Florida, (561) 416-8956, or by email at [email protected]. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as and does not constitute legal advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.

Hamilton & Associates | Securities Attorneys
Brenda Hamilton, Securities Attorney
200 E. Palmetto Park Rd., Suite 103
Boca Raton, Florida 33432
Telephone: (561) 416-8956
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