US SEC Awards Approximately $10.4 Million to Several Whistleblowers

The US Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission (SEC) announced on Monday that it had awarded over $10.4 million to several whistleblowers that participated in three separate cases. According to the press release, the first order granted awards of around $7.5 million to two whistleblowers that provided new information during an existing investigation.

One of them also received an award for contributing to an undisclosed agency, the SEC noted. Moreover, the second order granted over $2.4 million to two whistleblowers whose information led the authorities to successful enforcement. Finally, the SEC awarded three individuals approximately $435,000 in a third order that alerted the SEC’s staff about fraudulent conduct, leading to open an investigation.

“Today’s whistleblowers provided information and assistance that proved critical to several enforcement actions. Their information allowed the agency to conserve significant resources and to bring each action more efficiently,” Creola Kelly, Chief of the SEC’s Office of the Whistleblower Whistleblower A whistleblower is an individual who manages to provide information or activity within a private or public organization that is deemed illegal, unethical, or not correct. In many countries, including the United States, whistleblowers are protected by law and in some cases can even recoup rewards if their information leads to successful prosecution.In the context of the financial services industry, whistleblowers play a large role in oversight, helping unmask several episodes of illicit behavior A whistleblower is an individual who manages to provide information or activity within a private or public organization that is deemed illegal, unethical, or not correct. In many countries, including the United States, whistleblowers are protected by law and in some cases can even recoup rewards if their information leads to successful prosecution.In the context of the financial services industry, whistleblowers play a large role in oversight, helping unmask several episodes of illicit behavior Read this Term, commented.

Recent Whistleblowers' Actions

In September, the SEC granted a total of $11.5 million in awards to two whistleblowers who gave critical information in investigations led by the watchdog. This assistance helped the SEC to make successful enforcement actions. The SEC granted the first whistleblower $7 million, while the second received over $4.5 million.

In fact, the higher awarded whistleblower had an essential role in the investigation because they were the initial source that led the US SEC to open an inquiry into violations of the rulings. So far, the SEC has awarded $2 billion to 212 individuals since the whistleblower program started in 2012.

Last month, the US Commodity Futures Trading Commission (CFTC) granted its biggest award to date to a single whistleblower of nearly $200 million. The individual contributed ‘significantly’ with critical information that led to a successful enforcement action of two related cases by a US federal regulator and a foreign one. In fact, the whistleblower provided information that proved the wrongdoings in an investigation launched by the CFTC.