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US Corporate Law News: SEC announces its largest whistleblower awards to date

1 April 2018 | Applicable law: US

On March 19, 2018, the SEC announced its highest-ever Dodd-Frank whistleblower awards, with two whistleblowers splitting a nearly $50 million award and a third whistleblower receiving more than $33 million, topping the regulator's second highest whistleblower award of $30 million in 2014. 

Whistleblowers who provide credible and timely information to the SEC that results in a successful enforcement action can be eligible to claim approximately 10% to 30% of monetary penalties that are over $1 million. The SEC has awarded more than $262 million to 53 whistleblowers since issuing its first award in 2012. All whistleblower payments are made out of an investor protection fund established by the Congress that is financed entirely through monetary fines paid to the SEC by violators. By law, the SEC protects the confidentiality of whistleblowers and does not disclose information that might directly or indirectly reveal a whistleblower's identity. These high dollar amount awards highlight the integral role whistleblowers play in enabling the SEC to pursue and remedy serious violations that might otherwise go unnoticed.

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