The U.S. Securities & Exchange Commission (“SEC”) announced that it has issue an award of nearly $279 million to a whistleblower whose information and assistance led to a successful enforcement of SEC and related actions.  The $279 million award is the largest-ever award under the SEC’s Whistleblower Program, more than doubling the $114 million whistleblower award the SEC issued in October 2020.

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.  

Read the SEC’s Press Release and Order.

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