SEC Awards Over $28 Million to Whistleblowers

Posted on January 12th, 2024 at 1:21 PM
SEC Awards Over $28 Million to Whistleblowers

From the desk of Jim Eccleston at Eccleston Law 

The Securities and Exchange Commission (SEC) has granted awards totaling more than $28 million to seven individuals who played a pivotal role in a successful SEC enforcement action. All parties contributed significant and valuable information that substantially aided an SEC investigation.

Creola Kelly, Chief of the SEC's Office of the Whistleblower, emphasized these whistleblowers' crucial role in the SEC''s efforts to return millions of dollars to investors who had suffered harm. The funds awarded to whistleblowers come from an investor protection fund established by Congress, funded entirely by monetary sanctions imposed on securities law violators. Importantly, no funds are diverted from harmed investors to compensate whistleblowers.

Under the Dodd-Frank Act, the SEC safeguards the confidentiality of whistleblowers, ensuring that their identities remain undisclosed. Whistleblowers are eligible for awards when they voluntarily provide original, timely, and credible information that leads to a successful enforcement action. The awards typically range from 10 to 30 percent of the collected monetary sanctions when surpassing $1 million.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, whistleblower, and disciplinary matters.

Tags: eccleston, eccleston law, sec

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