SEC ANNOUNCES $17 MILLION WHISTLEBLOWER AWARD

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

Washington D.C., June 9, 2016 — The Securities and Exchange Commission today announced a whistleblower award of more than $17 million to a former company employee whose detailed tip substantially advanced the agency’s investigation and ultimate enforcement action.

The award is the second-largest issued by the SEC since its whistleblower program began nearly five years ago.  The SEC issued a $30 million award in September 2014 and a $14 million award in October 2013.

“Company insiders are uniquely positioned to protect investors and blow the whistle on a company’s wrongdoing by providing key information to the SEC so we can investigate the full extent of the violations,” said Andrew Ceresney, Director of the SEC’s Division of Enforcement.  “The information and assistance provided by this whistleblower enabled our enforcement staff to conserve time and resources and gather strong evidence supporting our case.”

Sean X. McKessy, Chief of the SEC’s Office of the Whistleblower, added, “In the past month, five whistleblowers have received a total of more than $26 million, and we hope these substantial awards encourage other individuals with knowledge of potential federal securities law violations to make the right choice to come forward and report the wrongdoing to the SEC.”

By law, the SEC protects the confidentiality of whistleblowers and does not disclose information that might directly or indirectly reveal a whistleblower’s identity.

The SEC’s whistleblower program has now awarded more than $85 million to 32 whistleblowers since the program’s inception in 2011.  Whistleblowers may be eligible for an award when they voluntarily provide the SEC with unique and useful information that leads to a successful enforcement action.  Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million.  All payments are made out of an investor protection fund established by Congress that is financed through monetary sanctions paid to the SEC by securities law violators.  No money has been taken or withheld from harmed investors to pay whistleblower awards.

CFTC SAYS WHISTLEBLOWER TO RECEIVE $290,000

FROM:  COMMODITY FUTURES TRADING COMMISSION 

September 29, 2015

CFTC to Issue Whistleblower Award of Approximately $290,000

Whistleblower Provided Valuable Information about Violations of the Commodity Exchange Act, which Resulted in an Enforcement Action

Washington, DC — The U.S. Commodity Futures Trading Commission (CFTC) today announced that it will make an award of approximately $290,000 to a whistleblower for providing valuable information about violations of the Commodity Exchange Act (CEA).

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the CFTC’s Whistleblower Program provides monetary awards to persons who report violations of the CEA if the information leads to an enforcement action that results in more than $1 million in monetary sanctions.

Whistleblowers are eligible for 10 percent to 30 percent of monies collected.  The CFTC can also pay awards based on monetary sanctions collected by other authorities in actions that are related to a successful CFTC enforcement action, and are based on information provided by a CFTC whistleblower.  The Dodd-Frank Act whistleblower provisions also prohibit retaliation by employers against employees who provide the CFTC with information about possible violations, or who assist the CFTC in any investigation or proceeding based on such information.

Aitan Goelman, the Director of the Division of Enforcement, stated, “Receiving high quality information from whistleblowers is an essential part of the CFTC’s overall enforcement program.  Such information allows the staff to bring cases more quickly and with fewer agency resources, and we will continue to provide financial incentives for people with specific and credible information about violations of the CEA to come forward.”

According to Christopher Ehrman, the Director of the CFTC’s Whistleblower Office, “The Whistleblower Office continues to receive high quality information from whistleblowers on a regular basis. The number of tips, complaints and referrals that we receive continues to grow year over year. We are committed to whistleblowers, and we value the information that they provide.”

SEC ANNOUNCES MULTI-MILLION DOLLAR PAYMENT TO FRAUD SCHEME WHISTLEBLOWER

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

SEC Pays More Than $3 Million to Whistleblower

07/17/2015 10:54 AM EDT

The Securities and Exchange Commission today announced a whistleblower award of more than $3 million to a company insider whose information helped the SEC crack a complex fraud.  The multi-million dollar payout is the third highest award to date under the SEC’s whistleblower program.

The whistleblower’s specific and detailed information comprehensively laid out the fraudulent scheme which otherwise would have been very difficult for investigators to detect. The whistleblower’s initial tip also led to related actions that increased the whistleblower’s award.

“Insiders may hold the key to helping our investigators unlock intricate fraudulent schemes,” said Andrew Ceresney, Director of the SEC’s Division of Enforcement.  “By providing significant financial incentives for people to come forward, the SEC’s whistleblower program continues to be profoundly effective in helping us protect investors and hold wrongdoers accountable.”

“The award made today is another testament to the agency’s commitment to reward those who provide high-quality information that leads to successful enforcement actions and related actions,” said Sean X. McKessy, Chief of the Office of the Whistleblower.  “Our office continues to receive thousands of whistleblower tips each year.  When those tips bear fruit, those individuals, like today’s whistleblower, may receive significant financial awards.”

Whistleblowers who provide the SEC with unique and useful information that contributes to a successful enforcement action are eligible for awards that can range from 10 percent to 30 percent of the money collected when financial sanctions exceed $1 million.  By law, the SEC protects the confidentiality of whistleblowers and does not disclose information that might directly or indirectly reveal a whistleblower’s identity.

Since its inception in 2011, the SEC’s whistleblower program has paid more than $50 million to 18 whistleblowers, including a more than $30 million award in 2014 and a more than $14 million award in 2013.  All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators.  No money is taken or withheld from harmed investors to pay whistleblower awards.