Four whistleblowers who assisted the SEC in two separate enforcement proceedings have been individually awarded a financial bounty as a result of providing important information.
- The first order saw awards to two whistleblowers, with the first receiving a $2 million award. The provided information led to an investigation, and the individual provided continual assistance including in-person interviews and the identification of central entities and persons. The second whistleblower in the order was awarded $150,000 after providing more limited information expanding the investigation into additional allegations of misconduct at the same company.
- The second order awarded $1.1 million to the first whistleblower, and the second in excess of $500,000. The first whistleblower alerted the SEC to the misconduct after reporting it internally. The second whistleblower’s information was not as extensive, and not submitted as timely as the first one, with some “unreasonable delay.” The two actions arose from the same “nucleus of facts.” Therefore, this action was treated as a single covered action when determining the amount of awards given to both individuals. A third whistleblower was involved in this action. However, the SEC decided against awarding a bounty, and the individual chose not to seek reconsideration of that decision.