SEC Issues Largest Whistleblower Awards Ever

The SEC awarded its largest whistleblower payments to date, splitting approximately $50 million between two whistleblowers and giving more than $33 million to a third whistleblower. The law firm representing the claimants stated that the tips led to the SEC's $415 million settlement for violations of Exchange Act Rule 15c3-3.

As explained in the Order, the SEC determined that the first two whistleblowers contributed information that became the "cornerstone" of the initial SEC investigation into the offending company's misconduct, ultimately leading to the significant settlement. The SEC noted that it awarded lesser amounts to these two whistleblowers because they "unreasonably delayed in reporting their information to the Commission." The SEC stated that the third whistleblower provided timely and significant information, as well as "follow-up assistance" in connection with the ensuing investigation.