In 2024, the U.S. Securities and Exchange Commission (SEC) continued to award whistleblowers who voluntarily provided original information which contributed to a successful enforcement action.
Under the SEC Whistleblower Program, qualified whistleblowers are eligible to receive awards of 10-30% of the funds collected by the government in the enforcement action aided by their disclosure.
Overall, the SEC has now awarded more than $2 billion to over 400 individual whistleblowers.
Here are the largest SEC awards of the 2024 calendar year:
$98 Million
On August 23, the SEC awarded more than $98 million to two whistleblowers whose disclosures contributed to a successful SEC enforcement action as well as successful related actions.The SEC awarded $82 million to one whistleblower and $16 million to another.
According to the SEC, “the first whistleblower’s tip prompted the opening of the investigations, and thereafter provided critical additional information and ongoing assistance.”
The second whistleblower’s information “was provided later” but “significantly contributed to one aspect of the actions” the agency notes.
“Whistleblower information and cooperation play an integral role in the SEC’s enforcement efforts,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower. “Without these whistleblowers’ information, the violations would have been difficult to detect.”
$37 Million
On July 17, the SEC awarded over $37 million to a whistleblower who voluntarily provided original information that contributed to the success of an enforcement action.
According to the SEC, the whistleblower “provided information not previously known to the SEC and which significantly contributed to a successful enforcement action” and “also met with Enforcement staff and identified potential witnesses and documents, which conserved staff time and resources.”
The award order specifies that the whistleblower’s information included “identifying witnesses and documents that helped save staff time and resources.”
The award order further notes that “there are high law enforcement interests here, as tens of millions of dollars were returned to harmed investors in the underlying Covered Action.”
“Today’s award illustrates the importance of the SEC’s whistleblower program, as the whistleblower’s information helped the agency return millions of dollars to harmed investors,” said Kelly.
$37 Million
On July 26, the SEC issued a $37 million whistleblower award to an individual who voluntarily provided original information and further assistance which led to a successful enforcement action.
According to the SEC, the whistleblower first reported their concerns internally which prompted the company to conduct an internal investigation and then report the misconduct to the SEC. The SEC further notes that “without [the whistleblower’s] ongoing, extensive and timely assistance during the course of the investigation, including answering the staff’s questions and providing sworn testimony which the staff found to be ‘candid and credible,’ the staff would not have learned the full context and dimension of the Firm’s misconduct.”
According to the SEC, the whistleblower faced retaliation for their whistleblowing, “including receiving a negative performance review and a sharply lower bonus than the previous year, despite meeting the performance goals the Firm had set for [them].”
“Today’s whistleblower learned of misconduct and made the difficult decision to report their concerns. This individual, who was retaliated against for their whistleblowing activity, played a crucial role in the ultimate success of the enforcement proceeding,” said Kelly.
$24 Million
On August 26, the U.S. Securities and Exchange Commission (SEC) granted $24 million in whistleblower awards to two individuals. One whistleblower received $4 million while the second received $20 million.
In its award order, the SEC explains that the second whistleblower received a larger award than the first because their “information played a more significant role in the investigation, as [the second whistleblower’s] information expanded the investigation to include [REDACTED], provided important information about key witnesses and their roles in the schemes, and allowed the staff to save time and resources.”
The first whistleblower by contrast “prompted the opening of the investigation” but “had limited knowledge of the schemes” and their information “was general and/or incorrect in several respects.”
“Today’s awards highlight the incredible public service provided by whistleblowers,” said Kelly. “The information would have been difficult to obtain in the absence of the whistleblowers as it pertained to conduct occurring abroad.”
$12 Million
On October 10, the SEC issued a $12 million award to three joint whistleblowers who voluntarily provided the agency with original information that led to a successful enforcement action.
According to the SEC award order, the joint whistleblowers “provided significant information and extensive ongoing assistance that contributed to an expansion of the scope of the investigation and the charges in the Covered Action.”
“Whistleblowers play a key role in helping the SEC hold wrongdoers accountable,” said Kelly. “Even where an investigation is already open, whistleblowers may contribute by providing new information about misconduct.”
