SEC Awards Historic $279 Million to Whistleblower

A Historical Milestone

The SEC has made history by awarding a jaw-dropping $279 million to a whistleblower, the largest award ever granted under its program. In comparison, this figure more than doubles the previous record set in October 2020, which stood at $114 million. Want to feel small? Just remember that this award tops the entire amount given for all whistleblower cases in 2022, which totaled $229 million across 103 individuals.

How the System Works

So, what does it take to score one of these massive payouts? The SEC typically provides awards that range from 10% to 30% of the collected monetary sanctions, provided the violation is larger than $1 million. Whistleblowers must deliver valuable information that directly aids in successful enforcement actions. This means that if you know something, now is the time to spill the beans – just make sure it’s the right beans!

The Seal of Secrecy

The identity of this record-setting whistleblower remains a mystery. The SEC keeps specifics under wraps to protect the individual’s privacy. It’s like being the superhero in a comic book; you know they’re important, but you just can’t see their face. Some speculate about possible links to significant violations in crypto or the depths of Wall Street, but the reality is as unclear as a foggy day in San Francisco.

Voices of the SEC

Gurbir Grewal, the director of the SEC’s division of enforcement, has praised this award for its potential power. He said, “The size of today’s award not only incentivizes whistleblowers to come forward but also reflects the tremendous success of our whistleblower program.” If that doesn’t inspire you to become a modern-day whistleblower, I don’t know what will! Meanwhile, Creola Kelly, chief of the SEC’s office of the whistleblower, emphasized the importance of sustained assistance from the whistleblower, noting their contributions were essential, even if the initial investigation didn’t stem from their report.

A Funding Puzzle

One might wonder – where does all this money come from? The SEC awards stem from an investor protection fund established by Congress and funded by monetary sanctions paid by violators. Think of it as a funding scheme where wrongdoers essentially foot the bill for those who do the right thing. So, you might say, “Thanks for your input, bad guys!”