Whistleblower Alert! The Claims Review Staff (“CRS”) issued a Preliminary Determination recommending (“Claimant 1”) receive a whistleblower award of about $1 million.
Claimant 1’s tip was the initial source of the underlying investigation and caused the opening of the investigation.
Source: https://www.sec.gov/rules/other/2023/34-97285.pdf
Background:
- (“Firm”), a registered broker-dealer
- Claimant 2 was not aware that he/she could submit an award claim based on Commission enforcement actions brought against other entities arising out of the same investigation for which he/she had not provided specific information or given direct testimony. Claimant 2 concludes that it is unfair that Claimant 1, whom Claimant 2 asserts used Claimant 2’s information, is being rewarded while Claimant 2 is denied an award.
- The record demonstrates that Claimant 1 voluntarily provided original information to the Commission that led to the successful enforcement of the Covered Action.
- Claimant 1’s tip was the initial source of the underlying investigation and caused the opening of the investigation.
- Further, Claimant 1 provided the Commission’s investigative staff with extensive and ongoing assistance during the course of the investigation, including identifying witnesses, and helping staff understand complex fact patterns and issues related to the matters under investigation.
- Claimant 1’s information and assistance allowed the Commission to devise an investigative plan and to craft its initial document requests from the Firm and other entities.
- Claimant 1 was an important source of specific information for the Covered Action.
TLDRS:
- The Claims Review Staff (“CRS”) issued a Preliminary Determination recommending (“Claimant 1”) receive a whistleblower award of about $1 million.
How is this related to GME though?
- For anyone who is reading this (thinks interns), if you have the receipts, not only will the SEC listen and open an investigation based on what you report but you can also get PAID in the process--$1 million in the instance for the person who got the ball rolling with this tip.
