Whistleblower Alert! SEC Awards Whistleblower More Than $9 Million. Whistleblower awards can range from 10% to 30% of the money collected when the monetary sanctions exceed $1 million. Therefore, the fine that was levied would range from $30 to $9 million
https://www.sec.gov/rules/other/2023/34-97879.pdf
Payments to whistleblowers are made out of an investor protection fund, established by Congress, which is financed entirely 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. Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action. Whistleblower awards can range from 10 to 30 percent of the money collected when the monetary sanctions exceed $1 million.
TLDRS:
- The Claims Review Staff (CRS) issued a Preliminary Determination recommending that the whistleblower in the Covered Action receives a whistleblower award of over $9 million.
- The CRS considered whether the whistleblower's information qualified as "original information" and determined that it did not disqualify under the relevant rules.
- The CRS adopted the recommendation, considering factors such as the significance of the provided information, assistance in the Covered Action, law enforcement interest, participation in internal compliance systems, culpability, reporting delay, and interference with internal systems.
- Based on these considerations, the whistleblower will receive a specified percentage of the collected monetary sanctions from the fine that was levied ranging from $30 million to $90 million.
