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ARTICLE · 10 OCTOBER 2013

SEC Issues $14 Million Whistleblower Bounty

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On September 30, 2013, the last day of the fiscal year, the SEC awarded more than $14 million to a tipster who provided details that led to a substantial recovery of investments in an enforcement action against Bank of the Commonwealth executives alleging a cover-up of loan portfolio losses by 64%.

United StatesCorporate/Commercial Law
Steven Pearlman
Steven Pearlman
K.M. Zouhary
K.M. Zouhary
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On September 30, 2013, the last day of the fiscal year, the SEC awarded more than $14 million to a tipster who provided details that led to a substantial recovery of investments in an enforcement action. Though only the third SEC whistleblower award since the bounty program was started, our readers know this award confirms a long-held prediction that larger awards were just a matter of time.

Latest Award Dwarfs Prior SEC Payouts

The SEC's first whistleblower award in August 2012 was $50,000.  In August and September of 2013, the SEC gave awards in a sham hedge fund case that is expected to hover around $125,000.  This third award is much more substantial.  As SEC Chair Mary Jo White stated:  "Our whistleblower program already has had a big impact on our investigations by providing us with high quality, meaningful tips.  We hope an award like this encourages more individuals with information to come forward."

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