Whistleblower awarded more than $37M by SEC

Whistleblower awarded more than $37M by SEC
Agency says award reflects importance of the program.
JUL 18, 2024

A whistleblower has been awarded more than $37 million resulting from information they shared with the Securities and Exchange Commission about wrongdoing.

The SEC says that the payment was made for information that it did not previously know and that led to a successful enforcement action. Under the terms of the program whistleblowers are awarded between 10% and 30% of the monetary sanctions collected when they are above $1 million.

Awards are paid from an investor protection fund, established by Congress, and financed entirely from monetary sanctions received from those penalized following enforcement action. No details that can identify the whistleblower are made public by the SEC, with anonymity protected under the provisions of the Dodd-Frank Act.

The SEC says that in this case, the whistleblower met with its staff and identified potential witnesses and documents, which conserved staff time and resources.

“[The] award illustrates the importance of the SEC’s whistleblower program, as the whistleblower’s information helped the agency return millions of dollars to harmed investors,” said Creola Kelly, chief of the SEC’s Office of the Whistleblower.

Latest News

Fed says 22 Wall Street banks will be stress-tested
Fed says 22 Wall Street banks will be stress-tested

Annual analysis of banking resilience has been announced.

Vanguard scores strategic wins with latest fee cuts
Vanguard scores strategic wins with latest fee cuts

The Pennsylvania-based fund giant stands to gain ground against rivals such as BlackRock while earning more goodwill from retail investors.

Duke’s Cam Harvey pegs cost of portfolio rebalancing at $16B
Duke’s Cam Harvey pegs cost of portfolio rebalancing at $16B

Research finds mechanical shifts in exposures have given an edge to hedge funds and other speculators, leading to steep costs for pension funds.

Empower extends health services for retirement plan clients
Empower extends health services for retirement plan clients

With a new suite of health and benefit services, the company has moved well beyond its beginnings as a retirement plan record keeper.

Altfest's president explains how advisors can use AI to their advantage
Altfest's president explains how advisors can use AI to their advantage

Using AI for tax and estate planning will enable advisors to spend more time with clients, Andrew Altfest says.

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.