The SEC Whistleblower Program has awarded more than $250 million to whistleblowers since 2011. Under the rules of the program, the SEC is required to pay awards to eligible whistleblowers who voluntarily provide the Commission with original information about violations of the federal securities laws that lead to successful enforcement actions that result in monetary sanctions of more than $1 million. Importantly, the SEC whistleblower rules allow individuals to submit information anonymously if represented by an attorney.
In exchange for specific and credible tips, the SEC is required to pay monetary awards of 10% to 30% of the total monetary sanctions collected. The largest award to date is $83 million, which was issued to three whistleblowers who disclosed information that led to a $415 million enforcement action (thus, the whistleblowers’ award was 20% of the total monetary sanctions).Read more here.