• AML
  • Qui Tam
  • SEC
  • CFTC
  • FCPA
  • FAQS
Subscribe
Donate
No Result
View All Result
Whistleblower Network News
The Truth at Any Cost.
Qui Tam, Compliance and Anti-Corruption News.
Whistleblower Network News
No Result
View All Result
Home Corporate SEC

SEC Sets Another Fiscal Year Record with $500,000 Whistleblower Award

Geoff SchwellerbyGeoff Schweller
March 29, 2021
in Corporate, SEC, SEC Rewards
Reading Time: 4 mins read
Share on TwitterShare on FacebookShare on LinkedInEmail

On March 29, the U.S. Securities and Exchange Commission (SEC) awarded more than $500,000 to a whistleblower whose disclosure allowed the SEC to shut down an ongoing fraudulent scheme. With this award, the SEC set a new record for the most individual whistleblowers awarded in a fiscal year.

According to the SEC’s award order, the whistleblower “provided significant information that prompted the opening of the investigations by [a separate agency] and [SEC] staff, met with them in-person, and continued to provide helpful documents.”

“With this award, the Commission has awarded 40 individuals this fiscal year, surpassing last year’s record of 39 individual awards,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “The Commission has awarded whistleblowers nearly $200 million in the first half of FY21 alone.”

Register for National Whistleblower Day

In January, the SEC set the record for the total dollar amount awarded to whistleblowers in a single fiscal year. As Norberg notes, since the 2021 fiscal year began on October 1, 2020, the SEC has awarded nearly $200 million to 40 individuals. The previous records for both total amount awarded and number of individuals awarded were both set in the 2020 fiscal year when the SEC awarded approximately $175 million to 39 individuals.

Through the SEC Whistleblower Program, qualified whistleblowers, individuals who voluntarily provide the SEC original information that leads to a successful enforcement action, are entitled to a monetary award of 10-30% of funds recovered by the government. According to the SEC, “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.”

The newly awarded whistleblower first reported the violations through their company’s internal reporting channel. In response, the company opened an internal investigation and then reported their findings to an outside agency, which in turn contacted the SEC. Importantly, the whistleblower separately filed a formal whistleblower tip with the SEC within 120 days of having reported the violations internally. A whistleblower is required to file a formal tip with the SEC in order to be eligible for an award.

In determining the whistleblower award, the SEC relied upon the “safe harbor” provision of the whistleblower program rules. The award order explains that in instances where a whistleblower formally files a tip with the SEC within 120 days of reporting the same information internally, the SEC “will treat the information as though it had been submitted to the Commission directly from the individual at the same time that it was submitted internally.” Thus in this case, the SEC considered the whistleblower as the source of the original information which led to the successful enforcement action. 

It is essential that whistleblowers promptly file formal complaints to the SEC in addition to internal reporting channels because it is also the only way to ensure legal protection under the Dodd-Frank Act. The Dodd-Frank Act provides anti-retaliation protections to whistleblowers but only if they have filed a formal SEC whistleblower tip prior to the retaliatory act. All in all, potential whistleblowers should contact experienced whistleblower attorneys prior to making any disclosure in order to ensure full legal protection and award eligibility.

The U.S. Senate will soon vote on the confirmation of Gary Genser as the next Chair of the SEC. Recently, Gensler pledged strong support for SEC whistleblowers. In a series of written answers to questions filed by Senator Chuck Grassley, Gensler stated: “If confirmed to lead the SEC, I will build on the work of past Chairs to ensure continued strength in the whistleblower program.”

Read:

SEC Awards Over $500,000 to Whistleblower Under “Safe Harbor” for Internal Reporting and Surpasses Record for Individual Awards

Tags: Corporate WhistleblowersSECWhistleblower Rewards
Previous Post

Webinar Highlights Importance of Whistleblowers and Reporters

Next Post

The Accidental Revolution: 46 Years of Right-to-Know in India

Geoff Schweller

Geoff Schweller

Geoff Schweller is the Assistant News Editor for Whistleblower Network News. He coordinates news coverage, and also writes about breaking whistleblower news, SEC whistleblowers, IRS whistleblowers, CFTC whistleblowers, and federal employee whistleblowers. Geoff graduated from Hamilton College with a degree in Sociology and minors in French & Francophone Studies and Cinema & New Media Studies.

Next Post
credit: Human Rights Practice Program, University of Arizona

The Accidental Revolution: 46 Years of Right-to-Know in India

Please login to join discussion

Receive Daily Alerts

Subscribe to receive daily breaking news and legislative developments sent to your inbox.

  • This field is for validation purposes and should be left unchanged.

Most Popular

Raytheon Whistleblower Receives $1.5 Million for Alleging Cybersecurity Non-Compliance

Ruling Striking Down Trump Order Targeting Law Firm Seen as Crucial for Whistleblowers

MJH Healthcare Settles Whistleblower Allegations of Postal Rate Fraud for $2 Million

Poll Shows Overwhelming Support for Stronger Whistleblower Laws in Australia, Mirroring Polling in US

Four Whistleblowers Receive $1.3 Million for Alleging Genetic Testing Fraud Scheme

Advocates Call for Increased Protections for Government Contractor Whistleblowers

Whistleblower Poll

Whistleblower Poll
Whistleblower Poll

Exclusive Marist Poll: Overwhelming Public Support Among Likely Voters For Increased Whistleblower Protections

byGeoff Schweller
October 6, 2020

ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

STAY INFORMED.
Subscribe to receive breaking whistleblower updates.

  • This field is for validation purposes and should be left unchanged.

About Us

  • About
  • Contact Us
  • Donate
  • Careers

Subscribe

  • Daily Mail
  • Follow us on Twitter
  • YouTube Channel

Contribute

  • Letter to the Editor
  • Submission Guidelines
  • Reprint Guidelines

Your Experience

  • Accessibility Statement
  • Privacy Policy
  • Terms of Use

Help

  • Rules for Whistleblowers
  • Frequently Asked Questions
  • Advertise
Whistleblower Network News

Whistleblower Network News is an independent online newspaper providing our readers with up-to-date information on whistleblowing. Our goal is to be the best source of information on important qui tam, anti-corruption, compliance, and whistleblower law developments. 

Submit an Article

Copyright © 2025, Whistleblower Network News. All Rights Reserved.

This Newspaper/Web Site is made available by the publisher for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this website, you understand that there is no attorney-client relationship between you and the Newspaper/Web Site publisher. The Newspaper/Web Site should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

Become a Whistleblower Network News Subscriber

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Subscribe to WNN

Retrieve your password

Please enter your username or email address to reset your password.

Subscribe to WNN
RSVP to National Whistleblower Day 2025! July 30, 2025 on Capitol Hill
RSVP NOW

Add New Playlist

No Result
View All Result
  • Exclusives
  • Government
    • False Claims-Qui Tam
    • Federal Employees
    • Intelligence
  • Corporate
    • CFTC & Commodities
    • Dodd-Frank
    • IRS & Tax
    • SEC & Securities
  • Features
  • Legislation
  • International
    • Foreign Corruption
  • Rewards
  • Whistleblower of the Week
  • Environment & Climate
  • Opinion
  • Editorial
  • Employment
    • Sarbanes-Oxley Whistleblowers
    • Retaliation
    • OSHA
  • Make National Whistleblower Day Permanent
  • Media
    • Podcasts
    • Videos
    • Webinars
    • National Whistleblower Day
  • Whistleblower Poll
  • Whistleblower Resources
    • Frequently Asked Questions
    • Resources for Locating An Attorney
    • The New Whistleblowers Handbook

Copyright © 2024, Whistleblower Network News. All Rights Reserved.

Go to mobile version