SEC Whistleblower Award Factors

SEC Whistleblower Award Factors: Extensive Ongoing Assistance

Extensive Ongoing Assistance Contributes To Nearly $4 Million SEC Whistleblower Award

In one case, the SEC’s Claims Review Staff (“CRS”) recommended that the Commission grant an SEC whistleblower award of approximately $4 million.  In doing so, the CRS considered several SEC whistleblower award factors that it felt justified both the grant of the award and the amount of the award.  The whistleblower did not appeal that recommendation.  In its Order granting the award, the Commission adopted the reasoning and recommendation of the CRS.

SEC whistleblower award factors
The Order granting the award

SEC Whistleblower Award Factors That Were Considered

The Order mentioned several SEC whistleblower award factors that the CRS considered, and that the Commission accepted, in granting the award.

First of all, the whistleblower satisfied the general criteria for receiving an award by voluntarily providing original information to the SEC that led to the successful enforcement of the SEC’s action.  The Order described the whistleblower’s information as “detailed and specific”.

The SEC’s press release about the award added that the information pertained to “serious misconduct”.

Extensive And Useful Ongoing Assistance

In addition, after initially reporting to the SEC, the whistleblower continued to provide the SEC with “extensive and useful ongoing assistance”.  This ongoing assistance included the whistleblower’s “industry-specific knowledge and expertise”.

SEC whistleblower award factors
The SEC’s press release

The Chief of the SEC’s Office of the Whistleblower (“OWB”) explained that “Not only did this whistleblower step forward and report suspicious conduct, but continued to help after we opened our investigation.”

According to the Order, the whistleblower’s ongoing assistance “allowed the Commission to efficiently investigate and bring the underlying action with fewer resources.”  In the SEC’s press release about the award, the Chief of the OWB added, “Whistleblowers with specialized experience or expertise can help us expend fewer resources in our investigations and bring enforcement actions more efficiently.”

Additional Information

For additional information about SEC whistleblower award factors that may affect the amount of an award paid out by the SEC, click on the links below:

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