Whistleblower - Iorio Law PLLC

The SEC Issues First Whistleblower Award of 2024, Awarding $37 Million to Whistleblower

Iorio Law PLLC — Wed, 17 Jul 2024 18:22:45 GMT

The Securities and Exchange Commission (“SEC”) announced a whistleblower award of more than $37 million to a whistleblower.

The whistleblower provided previously unknown information to the SEC and identified potential witnesses and documents. The help provided by the whistleblower significantly contributed to a successful enforcement action.

This award is the first payment made to a whistleblower in 2024. By way of comparison, in 2023, the SEC announced nine awards, which paid out over half of a billion dollars to informants. Payments to whistleblowers are made out of an investor protection fund, established by Congress. The investor protection fund is funded by fines and sanctions placed on wrongdoers who violate federal securities laws.

Congress established the whistleblower program to incentivize whistleblowers with specific, timely, and credible information about federal securities law violations to report to the SEC. A whistleblower may receive an award if they voluntarily provide the SEC with qualifying information, leading to successful enforcement. The award can range from 10 percent to 30 percent of the money collected due to the enforcement action.

Whistleblowers play an important role in fighting corruption, protecting retail investors, and maintaining a free and healthy market. Iorio Altamirano LLP, an investor advocate law firm, is committed to effectively representing whistleblowers.

Individuals with information regarding fraud or other violations of federal securities laws should contact whistleblower law firm Iorio Altamirano LLP for a free consultation to review your legal rights on filing a whistleblower tip to the SEC and preserve eligibility to receive a whistleblower award.

Whistleblower Award Alert: The SEC Awards Record $279 Million to Whistleblower

Iorio Law PLLC — Fri, 05 May 2023 14:40:21 GMT

The Securities and Exchange Commission (“SEC”) announced a whistleblower award of roughly $279 million to a whistleblower who provided information to the SEC, leading to a successful regulatory enforcement action by the SEC and another federal agency. This is the largest amount the SEC has ever awarded to a whistleblower, more than doubling the $114 million the SEC awarded to a whistleblower in October 2020.

Top 10 SEC Whistleblower Awards:

$279 million – May 5, 2023
$114 million – October 22, 2020
$110 million – September 15, 2021
$50 million – April 15, 2021
$50 million – March 19, 2018
$50 million – June 4, 2020
$39 million – September 6, 2018
$37 million – December 19, 2022
437 million – March 26, 2019
$36 million – September 24, 2021

In the SEC’s press release, Gubir S. Frewal, Director of the SEC’s Division of Enforcement, made the following statement: “This success directly benefits investors, as whistleblower tips have contributed to enforcement actions resulting in orders requiring bad actors to disgorge more than $4 billion in ill-gotten gains and interest. As this award shows, there is a significant incentive for whistleblowers to come forward with accurate information about potential securities law violations.”

Whistleblower Award Alert: The SEC Awards $36 Million to Whistleblower

Iorio Law PLLC — Fri, 24 Sep 2021 15:19:30 GMT

The Securities and Exchange Commission (“SEC”) announced a whistleblower award of roughly $36 million to a whistleblower that provided information to the SEC on an illegal scheme. The information led to successful regulatory enforcement actions by the SEC and another federal agency.

In total, $161 million has been awarded to whistleblowers this month. On September 17, 2021, the SEC announced an award of $11.5 million to two whistleblowers. On September 15, 2021, the SEC announced two awards totaling $114 million. That award marked a milestone for the SEC’s 10-year-old whistleblower program, as it put the total amount of awards issued to over $1 billion.

In total, the SEC has awarded over $1.1 billion to 214 individuals since the whistleblower program became effective in August 2011. The awards are paid out of an investor protection fund established by Congress financed entirely through monetary sanctions paid to the SEC by securities law violators. Money is not taken or withheld from harmed investors to pay whistleblower awards.

Individuals who have information regarding fraud or other violations of federal securities laws should contact whistleblower law firm Iorio Altamirano LLP for a free consultation to review your legal rights on how to file a whistleblower tip to the SEC and preserve eligibility to receive a whistleblower award.

The SEC Has Awarded Over $1 Billion to Whistleblowers

Iorio Law PLLC — Thu, 16 Sep 2021 13:07:33 GMT

On September 15, 2021, the Securities and Exchange Commission (“SEC”) announced whistleblower awards of roughly $110 million and $4 million to two whistleblowers. With these awards, the SEC has issued more than $1 billion to 207 whistleblowers, ten years after the SECs Whistleblower Program became effective. The program has issued a whopping $500 million in the fiscal year 2021 alone.

In the SEC’s press release, SEC Chair Gary Gensler issued the following statement:

“Today’s announcement underscores the important role that whistleblowers play in helping the SEC detect, investigate, and prosecute potential violations of the securities laws. The assistance that whistleblowers provide is crucial to the SEC’s ability to enforce the rules of the road for our capital markets.

SEC Director of Enforcement added the following comments:

“The whistleblower program has been instrumental to the success of numerous enforcement actions since it was instituted a decade ago. We hope that today’s announcement encourages whistleblowers to continue to come forward with credible information about potential violations of the securities laws.”

The $110 million award is the second-largest award in the SEC’s whistleblower program’s history and was issued 11 months after the SEC awarded its largest award of $114 million to a whistleblower. The $110 million award consists of an award of about $40 million connected with an SEC enforcement action and an award of approximately $70 million related to actions of another federal government agency. The whistleblower provided the SEC with significant independent analysis that substantially advanced both enforcement investigations.

In total, the SEC has awarded over $1 billion to 207 individuals since the whistleblower program became effective in August 2011. The awards are paid out of an investor protection fund established by Congress financed entirely through monetary sanctions paid to the SEC by securities law violators. Money is not taken or withheld from harmed investors to pay whistleblower awards.

Whistleblower law firm Iorio Altamirano LLP is committed to the effective representation of whistleblowers. Individuals with credible information regarding fraud or other violations of federal securities laws should contact Iorio Altamirano LLP to review their legal rights.

Whistleblower Awards Alert: The SEC Awards $2.6 Million to Four Whistleblowers

Iorio Law PLLC — Tue, 31 Aug 2021 13:36:42 GMT

On August 27, 2021, the Securities and Exchange Commission (“SEC”) announced whistleblower awards of roughly $2.6 million to five whistleblowers in three separate regulatory enforcement proceedings. In total, over $16 million has been awarded to SEC whistleblowers this month.

In the first regulatory enforcement proceeding, a whistleblower was awarded approximately $1.2 million for providing the regulator with independent analysis based upon a complex algorithm the whistleblower developed and applied to publicly available data. The information was valuable to the SEC and saved the agency time and resources.

In the second SEC enforcement proceeding, more than $1 million was awarded to three compliance personnel whose information led to a successful regulatory enforcement action. The whistleblower that received the highest award provided “extraordinary assistance and comprehensive information,” according to the SEC’s press release.

Finally, in a third SEC AWARD Order, more than $350,000 was awarded to an individual who provided the SEC with an independent analysis. The individual identified patterns among publicly available information that allowed the SEC to quickly identify and prevent wrongdoing and to preserve assets.

In total, the SEC has awarded over $959 million to 203 individuals since the whistleblower program became effective in August 2011. The awards are paid out of an investor protection fund established by Congress financed entirely through monetary sanctions paid to the SEC by securities law violators. Money is not taken or withheld from harmed investors to pay whistleblower awards.

Whistleblower Awards: The SEC Awards $9.5 Million to Six Whistleblowers in Less Than a Week

Iorio Law PLLC — Tue, 10 Aug 2021 15:22:29 GMT

On August 10, 2021, the Securities and Exchange Commission (“SEC”) announced whistleblower awards of nearly $6 million to two whistleblowers who provided information and assistance to the SEC in separate enforcement proceedings. The latest awards come after the SEC revealed on August 6, 2021, an award of more than $3.5 million to three individuals in two separate proceedings.

In the first enforcement proceeding (announced on August 10, 2021), a whistleblower was awarded more than $3.5 million for providing the regulator with valuable new information that resulted in the expansion of an existing investigation into a new geographic area. The whistleblower also provided additional information and assistance to help the agency bring charges in the underlying enforcement action.

In the second enforcement proceeding (announced on August 10, 2021), a whistleblower was awarded more than $2.4 million for providing the SEC with a tip that promoted an investigation. The whistleblower also provided the SEC with documents and identified potential witnesses.

After the most recent awards were announced, Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower, provided the following commentary: “With today’s orders, the SEC has made whistleblower awards to 14 individuals in less than a month, reflecting the SEC’s commitment to reward whistleblowers who provide new, critical information that leads to successful enforcement actions.”

In the first order (announced on August 6, 2021), the SEC awarded approximately $2 million to a whistleblower who alerted the SEC to an ongoing fraud. The tip prompted an investigation and led to a successful SEC enforcement action. In addition to providing the tip, the informant participated in multiple voluntary interviews and provided the SEC with documents and information.

In the second order (announced on August 6, 2021), the SEC awarded approximately $1 million to one whistleblower and $500,000 to another whistleblower who independently provided valuable information to the SEC in an ongoing investigation.

In total, the SEC has awarded over $956 million to 195 individuals since the whistleblower program became effective in August 2011. The awards are paid out of an investor protection fund established by Congress financed entirely through monetary sanctions paid to the SEC by securities law violators. Money is not taken or withheld from harmed investors to pay whistleblower awards.

Whistleblower Award Alert: The SEC Awards in Excess of $4 Million to Four Whistleblowers

Iorio Law PLLC — Tue, 03 Aug 2021 00:55:47 GMT

On August 2, 2021, the Securities and Exchange Commission (“SEC”) announced whistleblower awards of more than $4 million to four whistleblowers who provided information and assistance to the SEC in two separate enforcement proceedings.

In the first enforcement proceeding, a whistleblower was awarded more than $2 million for providing the regulator with information that launched an investigation. The informant also provided the SEC with ongoing assistance by participating in interviews and identifying key individuals and entities. Another whistleblower was issued an award of $150,000 for providing the SEC with information that resulted in an expansion of the investigation.

In the second enforcement action, the SEC awarded more than $1.6 million to two whistleblowers. The first individual provided the SEC with information that alerted the SEC to the violations and was awarded $1.1 million. The second whistleblower was awarded $500,000 for providing significant and timely information.

In total, the SEC has awarded over $946 million to 190 individuals since the whistleblower program became effective in August 2011. The awards are paid out of an investor protection fund established by Congress financed entirely through monetary sanctions paid to the SEC by securities law violators. Money is not taken or withheld from harmed investors to pay whistleblower awards.

Whistleblower Award Alert: The SEC Awards Nearly $3 Million to Whistleblower

Iorio Law PLLC — Wed, 21 Jul 2021 15:29:40 GMT

On July 21, 2021, the Securities and Exchange Commission (“SEC”) announced an award of nearly $3 million to a whistleblower who alerted the SEC to previously unknown conduct that led to a successful SEC enforcement action. According to Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower, the whistleblower “provided substantial additional assistance” to the SEC, which resulted in the SEC saving a “considerable amount of SEC resources.”

In total, the SEC has awarded over $942 million to 186 individuals since the whistleblower program became effective in August 2011. The awards are paid out of an investor protection fund established by Congress financed entirely through monetary sanctions paid to the SEC by securities law violators. Money is not taken or withheld from harmed investors to pay whistleblower awards.

The SEC Announces $1 Million to Whistleblower Award, Bringing 2021 Total to Over $200 Million

Iorio Law PLLC — Tue, 20 Jul 2021 01:32:08 GMT

On July 15, 2021, the Securities and Exchange Commission (“SEC”) announced an award of more than $1 million to a whistleblower. According to Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower, the whistleblower “played a crucial role” by providing the SEC with valuable information and ongoing assistance.

In 2021, the SEC has now awarded over $200 million to whistleblowers. Since the whistleblower program became effective in August 2011, the SEC has awarded over $939 million to 182 individuals. The awards are paid out of an investor protection fund established by Congress financed entirely through monetary sanctions paid to the SEC by securities law violators. Money is not taken or withheld from harmed investors to pay whistleblower awards.

Whistleblower Awards, Week of June 21 – 25, 2021

Iorio Law PLLC — Wed, 30 Jun 2021 18:03:57 GMT

During the week of January 21, 2021, the Securities and Exchange Commission (“SEC”) awarded approximately $6.3 million to five whistleblowers.

First, on June 21, 2021, the SEC announced awards of nearly $4 million to an informant whose information led to the initiation of an SEC investigation that resulted in a successful enforcement action. According to the SEC’s press release, the whistleblower provided extraordinary assistance, participating in hours of telephonic interviews and communicating dozens of times with investigative staff. The whistleblower also identified key witnesses and provided documents to the staff.

Also, on June 21, 2021, the SEC awarded approximately $1.3 million to three whistleblowers who provided the SEC with information that prompted the opening of an investigation.

Finally, on June 24, 2021, the SEC announced an award of more than $1 million to an individual whose information and assistant led to multiple successful SEC enforcement actions. According to the SEC’s press release, the whistleblower provided SEC staff with valuable information and ongoing assistance, including participating in interviews with the staff.

In total, the SEC has awarded around $938 million to 179 individuals since the whistleblower program became effective in August 2011. All awards are paid out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards.

June 14, 2021: The SEC Awards $3 Million to Two Whistleblowers

Iorio Law PLLC — Wed, 16 Jun 2021 18:35:56 GMT

On June 14, 2021, the Securities and Exchange Commission (“SEC”) revealed a total award of approximately $3 million to two whistleblowers. According to the SEC’s press release, the whistleblowers separately and independently provided the SEC with valuable information and ongoing assistance, which included participating in multiple interviews and providing helpful documents. The whistleblowers’ assistance led to a successful SEC enforcement action.

In total, the SEC has awarded around $932 million to 172 individuals since the whistleblower program became effective in August 2011. All awards are paid out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards.

The SEC Announces Awards of $13 Million and $10 Million to Two Whistleblowers

Iorio Law PLLC — Wed, 02 Jun 2021 19:09:23 GMT

The Securities and Exchange Commission (“SEC”) began the month of June 2021 by announcing awards of approximately $13 million and $10 million to two whistleblowers whose whistleblower tips led to successful SEC enforcement actions and related actions. In addition to the initial tips, the whistleblowers also provided the SEC and another federal agency with substantial assistance by submitted information and documents, participating in interviews, and identifying key individuals who engaged in the misconduct at issue.

According to Emily Pasquinelli, the Acting Chief of the SEC’s Office of the Whistleblower, the “whistleblowers’ information and assistance led to multiple successful enforcement actions related to a complex and fraudulent scheme involving multiple individuals and tens of millions of dollars in ill-gotten gains.”

In total, the SEC has awarded over $928 million to 166 individuals since the whistleblower program became effective in August 2011. All awards are paid out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards.

Individuals who have information regarding fraud or other violations of federal securities laws should contact law firm Iorio Altamirano LLP for a free consultation to review your legal rights on how to file a whistleblower tip to the SEC and preserve eligibility to receive a whistleblower award.

$28 Million Awarded to Whistleblower by SEC

Iorio Law PLLC — Wed, 19 May 2021 16:52:08 GMT

The Securities and Exchange Commission (“SEC”) announced an award of more than $28 million to a whistleblower whose information led to both an SEC enforcement action and an investigation by another federal agency. The regulatory actions resulted in significant enforcement actions.

According to Reuters, the whistleblower’s tip led U.S. authorities to bring bribery charges against a subsidiary of Panasonic Corp. In 2018, Panasonic Avionics Corp consented to pay approximately $280 million to settle criminal and civil charges that the company falsified its financial records to conceal payments to sales agents in China and other parts of Asia.

The $28 million award is the tenth-largest in the SEC’s Whistleblower Program’s history.

In 2021, the SEC has awarded more than $132 million to whistleblowers, including approximately $85 million to nine individuals just in May 2021. In total, since the program’s inception in 2011, the SEC has awarded more than $900 million to 163 individuals. At its current clip, the program may reach a milestone of $1 billion in whistleblower awards before the end of the year.

All awards are paid out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards.

Congress established the whistleblower program to incentivize whistleblowers with specific, timely, and credible information about federal securities laws violations to report to the SEC. A whistleblower may receive an award if they voluntarily provide the SEC with qualifying information, leading to successful enforcement. The award can range from 10 percent to 30 percent of the money collected due to the enforcement action.

SEC Awards $3.6 Million to Whistleblower; The SEC Has Awarded Over $104 Million Whistleblowers in 2021

Iorio Law PLLC — Wed, 12 May 2021 21:15:34 GMT

On May 12, 2021, the Securities and Exchange Commission (“SEC”) announced an award of approximately $3.6 million to a whistleblower who brought valuable information to the SEC’s attention, which lead to an investigation that ended in a successful SEC enforcement action. According to Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower, the “whistleblower further assisted the SEC by providing ongoing assistance as the Commission’s investigation progressed.”

Since the beginning of the year, the SEC has awarded over $104 million to whistleblowers:

May 10, 2021: The SEC awarded $22 million to two whistleblowers whose information and assistance aided the SEC, resulting in successful SEC enforcement actions against a financial services firm.
April 23, 2021: The SEC announced awards totaling more than $3 million to two whistleblowers in separate enforcement proceedings. One of the whistleblowers received an award of approbatively $3.2 million who alerted SEC staff to violations, identified key issues for staff to focus on, and provided subject matter expertise to the staff that conserved SEC resources. The other whistleblower received more than $100,000 for providing the SEC with significant information and ongoing assistance. The whistleblower’s information and cooperation helped the SEC detect and stop an ongoing fraud preying on investors.
April 15, 2021: The SEC awarded over $50 million to joint whistleblowers whose information alerted SEC staff to violations that involved highly complex transactions and would have been difficult to detect without their information. According to the SEC’s press release, the joint whistleblowers provided exemplary assistance to the SEC staff during the investigation, including meeting with staff numerous times and providing voluminous detailed documents. As a result of the courageous actions of the whistleblowers, tens of millions of dollars were returned to harmed investors.
April 9, 2021: The SEC awarded approximately $2.5 million to a whistleblower who provided crucial evidence that supported charges related to a breach of fiduciary duties owed to investors.
March 29, 2021: The SEC awarded over $500,000 to a whistleblower who provided information and assistance that helped shut down an ongoing fraudulent scheme. The whistleblower initially raised concerns internally before submitting a tip to the SEC.
March 9, 2021: The SEC awarded approximately $1.5 million to a whistleblower who alerted the SEC to previously unknown conduct and thereafter provided multiple submissions, identified potential witnesses, and met with staff on several occasions
March 4, 2021: The SEC announced an award of over $5 million to joint whistleblowers located abroad who provided significant information about misconduct abroad that directly supported certain allegations in the enforcement action.
March 1, 2021: The SEC awarded over $500,000 to two whistleblowers whose tip revealed an ongoing fraud and resulted in multiple SEC actions and a related action from another government agency.
February 25, 2021: The SEC awarded more than $1.7 million to two whistleblowers in separate proceedings. One of the whistleblowers received over $900,000 after providing significant evidence, including a crucial declaration, that helped expedite an ongoing investigation and enabled the SEC to shut down an ongoing fraudulent scheme that preyed on retail investors. The other whistleblower received over $800,000 for providing important evidence of false and misleading statements made to investors. As a result, millions of dollars were returned to harmed investors.
February 23, 2021: The SEC awarded $9.2 million to a whistleblower who provided information that led to successful, related actions by the U.S. Department of Justice, one of which was a non-prosecution agreement (NPA) or deferred prosecution agreement (DPA).
February 19, 2021: The SEC announced that two separate whistleblowers received awards totaling almost $3 million. One of the whistleblowers received over $2.2 million for providing important, high-quality information that aided an investigation. The whistleblower’s tip helped the SEC bring an enforcement action that resulted in the return of millions of dollars to harmed clients. The other whistleblower received an award of almost $700,000 for alerting the SEC to a fraudulent reporting scheme, prompting the opening of the investigation. The whistleblower provided critical evidence to the SEC and helped identify key documents and witnesses.
January 14, 2021: The SEC awarded nearly $600,000 to a whistleblower that substantially contributed to an open investigation by providing detailed and highly valuable information resulting in critical investigative leads.
January 7, 2021: The SEC announced awards totaling more than $1.1 million to five whistleblowers who provided high-quality information that led to successful enforcement actions.

In total, the SEC has awarded over $842 million to 157 individuals since the whistleblower program became effective in August 2011. All awards are paid out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards.

SEC Awards $22 Million to Two Whistleblowers Whose Information Resulted in Successful SEC Enforcement Actions Against a Financial Services Firm

Iorio Law PLLC — Tue, 11 May 2021 00:10:44 GMT

On May 10, 2021, the Securities and Exchange Commission (“SEC”) announced an award of approximately $22 million to two whistleblowers whose information and assistance aided the SEC that resulted in successful SEC enforcement actions brought against a financial services firm.

The first whistleblower, who was the initial source of the investigation, received an award of $18 million. The second whistleblower, who submitted information much later after the investigation was already underway, received an award of $4 million. Both whistleblowers assisted the SEC’s staff to better understand complex transactions related to the matters under investigation.

“This case demonstrates once again the value of the whistleblower program in helping to protect investors, and the Commission’s continued commitment to rewarding individuals who provide high-quality tips,” said Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower.

In total, the SEC has awarded over $838 million to 156 individuals since the whistleblower program became effective in August 2011. All awards are paid out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards.

SEC Awards $2. 5 Million to Whistleblower, as Chief of the Sec’s Office of the Whistleblower Announces Impending Departure

Iorio Law PLLC — Sat, 10 Apr 2021 12:52:48 GMT

On April 9, 2021, the Securities and Exchange Commission (“SEC”) announced an award of approximately $2,500,000 to a whistleblower who provided information and assistance that resulted in a successful SEC enforcement action. The whistleblower provided crucial evidence that supported charges related to a breach of fiduciary duties owed to investors, according to Jane Norberg, Chief of the SEC’s Office of Whistleblower.

Unrelatedly, on April 8, 2021, the SEC announced that Ms. Norberg, who has been the Chief of the SEC’s Office of Whistleblower since 2016, intends to leave the agency this month. Ms. Norberg has been with the Whistleblower Office since its inception in 2012. The Whistleblower Office’s Deputy Chief, Emily Pasquinelli, will serve as Acting Chief following Ms. Norberg’s departure.

In total, the SEC has awarded over $762 million to 148 individuals since the whistleblower program became effective in August 2011. All awards are paid out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards.