Two SEC whistleblower awards announced this week offer insight into how the SEC makes award decisions when more than one whistleblower provides information about corporate misconduct and securities law violations. While the second whistleblower provided information several years after the first whistleblower, the SEC recognized the second whistleblower’s considerable contributions. The second whistleblower provided information much later, but it was valuable first-hand information and gave the SEC a “more complete picture” of how the misconduct unfolded. The money for SEC whistleblower rewards comes from a special fund that is financed entirely through monetary sanctions paid to the SEC by securities law violators. The SEC has awarded $842 million to 157 whistleblowers since the SEC issued its first whistleblower award in 2012.

Source: Forbes May 14, 2021 14:05 UTC