Articles Posted in Whistleblower Awards

The US Securities and Exchange Commission has announced another whistleblower award, this one for over $2.2M. The whistleblower, an ex-insider of a company, had initially reported the information resulting in a successful SEC enforcement action to another federal agency before going to the SEC.

Under the Exchange Act Rule 21F-4(b)(7), the SEC will treat information that a whistleblower has given to another agency first as if it were submitted to the regulator at the same time, as long as the information is provided to the Commission within 120 days. When initially, the whistleblower voluntarily gave the information to the other federal agency, the latter “referred the matter” to the SEC, which conducted a probe. The whistleblower then gave the SEC the same information that was shared with the other agency.

SEC Office Whistleblower Chief Jane Norberg noted how this latest award is a prime example of how when even if a whistleblower provides the information to another agency first, he/she may still be eligible for an SEC whistleblower award as long as that same information is shared with the Commission within the safe harbor period and satisfies the other requirements for qualifying for the award. To date, the regulator has awarded 54 whistleblowers over $264M.

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