20% Joint SEC Whistleblower Reward, Apportioned 11% & 9% Between Two Whistleblowers
Two separate whistleblowers voluntarily provided original information to the U.S. Securities and Exchange Commission (“SEC”). Their information led to the successful enforcement of the same SEC whistleblower case. The SEC’s Claims Review Staff (“CRS”) issued a Preliminary Determination granting a joint SEC whistleblower reward.
However, the CRS recommended that they receive different percentage amounts of that joint SEC whistleblower reward.
Each of the whistleblowers sent their own written notices to the SEC stating that they were not going to contest the CRS’s Preliminary Determination. For the reasons set forth in the Preliminary Determination, the Commission entered an Order granting the joint SEC whistleblower reward, divided between them in separate individual amounts.
The SEC Order
Separate Percentage Allocations Of The 20% SEC Whistleblower Reward
In at least one case where the whistleblowers appeared to have provided their information and assistance together, the Commission granted what it called a “joint” award. [For more about that “joint” award, click here.]
In at least one other case, the Commission said that the whistleblowers were acting together or “in concert”. Yet in that case, the Commission did not call the award “joint”, even though it split the award evenly between the two whistleblowers who it said were acting in concert. [To read more about that award, click here.]
In this case, the Commission did not specifically call this a joint SEC whistleblower reward. However, because the Commission said on page 1 of its Order that the CRS recommended giving out a single award of 20% to be divided between the two whistleblowers, and not two separate awards, for present purposes it will be referred to as a joint SEC whistleblower reward. [Note that the Order is confusing, though, because later on page 2 it says that it is giving an “award” in one percentage amount to the first whistleblower, and an “award” in a different percentage amount to the other whistleblower.]
No Reasons Given For The Different Percentage Amounts
The total 20% joint SEC whistleblower reward was apportioned between the two whistleblowers.
One whistleblower received eleven percent (11%) of the joint SEC whistleblower reward. The other whistleblower received an individual payout of of nine percent (9%).
The Order did not give details about the facts of the case or about the assistance that each respective whistleblower provided to the SEC. Nor did it explain the reasons for the different percentages awarded to each whistleblower.
For additional information about this joint SEC whistleblower reward, click on the link below:
- The SEC’s September 28, 2015 Order. (External link to the SEC’s website.)