Seven whistleblowers in a single case are sharing over US$28 million in rewards for their tips and cooperation with the U.S. Securities and Exchange Commission (SEC).
The SEC announced a series of awards in a single enforcement action, with the primary tipster receiving US$13 million, four others sharing another US$13 million, and the sixth and seventh whistleblowers sharing US$2 million.
The regulator said all the whistleblowers in the case “provided information that significantly contributed to an SEC investigation.”
The lone tipster and the group of four provided information early in the investigation that saved SEC enforcement staff “considerable time and resources,” the SEC said. The second set of whistleblowers that received a joint US$2 million award “provided new, but more limited, information later in the investigation.”
Another prospective whistleblower was denied an award, as the regulator found that the information they supplied didn’t contribute to the case.
In an order detailing its decision, the SEC said enforcement staff opened their investigation “based on a news report, not on any information provided by [the rejected whistleblower].”
And it noted that by the time the prospective whistleblower began providing information, the investigation had been ongoing for approximately two and a half years.
“These whistleblowers provided valuable information and substantial assistance that played a critical role in the SEC returning millions of dollars to harmed investors,” said Creola Kelly, chief of the SEC’s Office of the Whistleblower, in a release.