Successful Enforcement and Monetary Rewards

In order to be entitled to consideration for monetary incentives, the whistleblower’s original information must lead to the successful enforcement of a federal court or administrative action by the Securities and Exchange Commission (SEC). This can be done by (1) providing information that is sufficiently specific, credible, and timely to enable the SEC to open a new examination or investigation, reopen a closed investigation, or open a new line inquiry in an existing examination or investigation or (2) where the conduct was already under investigation when the information was submitted, and the original information from the whistleblower “significantly contributed” to the success of the action.

In order for the whistleblower to be eligible for any monetary incentive, the information provided to the SEC must lead to monetary sanctions totaling more than $1 million in the aggregate. The rule permits aggregation of multiple commission cases, related actions by other governmental agencies and Department of Justice criminal prosecutions to meet the threshold amount.

Certain factors may increase a whistleblower’s percentage award, such as:

  1. the significance of the information provided by the whistleblower;
  2. assistance provided by the whistleblower;
  3. law enforcement interest in making a whistleblower award; and
  4. participation by the whistleblower in internal compliance systems.
    Certain factors can serve to decrease the whistleblower’s percentage award, such as:
    1. culpability of the whistleblower;
    2. the unreasonable delay in reporting by the whistleblower; and
    3. interference with internal compliance and reporting systems by the whistleblower.

These factors are not considered exhaustive and other criteria may affect the award percentage.

Please contact our SEC Whistleblower Recovery Center at 1-866-381-2434 for a confidential, no obligation consultation to see if you can qualify for rewards for information about securities violations that you have information about.

If you would like one of our specialists to provide a free consultation, please let us know how to reach you:

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Your information may be forwarded to a law firm for analysis.