SEC Awards $18 Million to Three Whistleblowers

The SEC awarded three whistleblowers approximately $18 million for providing material information that culminated in a successful enforcement action.

In its preliminary determination, the SEC Claims Review Staff ("CRS") stated that the information provided by the first witness brought a potentially fraudulent scheme to the attention of the SEC, and was the main basis for opening an investigation. The SEC said that the second witness provided new information relating to specific charges. For the third witness, the SEC said that the information provided assisted the Commission in investigating certain false statements alleged in the enforcement. The SEC also considered a reward application from a fourth witness but denied the claim, saying that the witness did not provide any new information, nor did the witness submit the information in the required format.

Two of the witnesses that received awards appealed the CRS' determinations, arguing for a greater award percentage based on the merit of the information provided. The fourth witness also submitted an appeal. After consideration, CRS confirmed its original recommendations.

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