The Securities and Exchange Commission (“SEC”) announced that it had awarded $28 million to joint whistleblowers under the SEC’s Dodd-Frank Whistleblower Program.  According to the SEC, the joint whistleblowers “provided critical information and assistance” in a successful enforcement action that led to the return of millions of dollars to injured investors.  Earlier this month, the SEC also issued an $18 million award and a $5 million award under its whistleblower program.

Under the Dodd-Frank Act, the SEC makes payments to whistleblowers who come forward with information that leads to successful enforcement actions out of an investor protection fund.  The fund is financed entirely through monetary sanctions paid to the SEC by securities law violators.  Under the SEC’s whistleblower program, whistleblower awards can range form 10 to 30 percent of the money collected when monetary sanctions exceed $1 million.  In addition, as required by the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers and does not disclose information that could reveal a whistleblower’s identity.

Read the SEC’s order here.

Read more about G&G’s whistleblower practice here.