How Much Do SEC Whistleblowers Get Paid?

Whistleblowers Can Receive Substantial Compensation for Coming Forward, But Their Compensation Depends on the Quality of Their Information and the Outcome of the SEC’s Investigation

The Dodd-Frank Act established the Securities and Exchange Commission (SEC) Whistleblower Program in 2010. Under the terms of the program, whistleblowers are entitled to a portion of the SEC’s recovery in cases where they provide information that leads to a successful enforcement action. These portions can be substantial—in some cases in the hundreds of thousands or millions of dollars—but the specific amount each whistleblower receives depends on several factors.

Calculating SEC Whistleblower Award Amounts

The SEC Whistleblower Program is not a fixed-fee program. Instead, as the SEC explains:

“[A] whistleblower who voluntarily provides the SEC with original, timely, and credible information that leads to a successful enforcement action in which the SEC obtains monetary sanctions exceeding $1 million may be eligible for an award. . . . Whistleblower awards can range from 10% to 30% of the money collected when the monetary sanctions exceed $1 million.”

Whistleblowers who come forward can help the SEC stop any form of securities fraud, and the SEC can pursue these cases civilly or criminally. As a result, the amount of monetary sanctions at stake can vary widely in SEC whistleblower cases. But, even in cases with relatively low monetary sanctions, whistleblower compensation can be substantial:

• For cases resulting in monetary sanctions of $2 million, whistleblowers can receive up to $600,000.
• For cases resulting in monetary sanctions of $5 million, whistleblowers can receive up to $1.5 million.
• For cases resulting in monetary sanctions of $10 million, whistleblowers can receive up to $3 million.
• For cases resulting in monetary sanctions of $100 million, whistleblowers can receive up to $30 million.
• For cases resulting in monetary sanctions of $1 billion, whistleblowers can receive up to $300 million.

If you have evidence of securities fraud, it isn’t your job to estimate the amount of monetary sanctions that may be at stake. Instead, your job is to seek legal representation promptly so that you can make informed decisions with the guidance of an experienced whistleblower lawyer. When you contact us, we will provide a confidential consultation at no out-of-pocket cost to you, and we will help you decide how to move forward in light of the circumstances at hand.

4 Key Factors that Influence the Amount of SEC Whistleblower Compensation

As the SEC indicates, “Whistleblower awards can range from 10% to 30% of the money collected when the monetary sanctions exceed $1 million.” This is a fairly broad range, and there are several factors that can influence the exact percentage that the SEC awards. Specifically, the SEC will increase or decrease a whistleblower’s award based on the following four factors:

• Quality of Information – If the information you provide to the SEC is especially strong, this can increase your award percentage. But, if you fail to disclose all of the relevant information in your possession, this can reduce your award percentage.
• Extent of Assistance – If you play an active role in helping the SEC complete its investigation, analysis, and enforcement action, this can also increase your award percentage. If you have the ability to render assistance but fail to do so, this can have an adverse effect on your award.
• Interest in Deterring Violations – The SEC may also increase a whistleblower’s compensation in cases where a higher award is more likely to deter future violations. This can include cases involving large-scale corporate fraud and cases involving senior corporate executives and board members, among others.
• Unreasonable Reporting Delays – Whistleblowers who unreasonably delay reporting their findings to the SEC may receive lower awards as well. If you believe that you may have evidence of securities fraud, we strongly recommend that you consult with a lawyer as soon as possible.

The Largest SEC Whistleblower Awards to Date

The SEC Whistleblower Program has generated many multi-million-dollar awards since its inception. While the SEC does not disclose the identities of individual whistleblowers, it does announce the amounts of its awards when they are awarded. Some high-profile examples include:

• $279 Million – The largest SEC whistleblower award to date is an award of $279 million. The SEC announced this award on May 5, 2023.
• $114 Million – In October 2020, the SEC announced an award of $114 million, surpassing the previous record of $50 million, which had been announced six months prior.
• $110 Million – In September 2021, the SEC awarded approximately $110 million to a whistleblower who provided independent analysis that led to a successful enforcement action.
• $105 Million – In May 2022, the SEC awarded approximately $105 million to two whistleblowers who shared the award for providing information that led to both an SEC enforcement action and a related action in another agency.
• $104 Million – In October 2022, the SEC announced it had awarded more than $104 million to multiple whistleblowers who provided information that led to a successful enforcement action against a large multinational corporation and related actions in other regulatory agencies.

Again, these are just examples. The SEC Whistleblower Program has led to many, many more awards in amounts ranging from tens of thousands to tens of millions of dollars. If you believe that you may have information that is relevant to an SEC investigation, you owe it to yourself to speak with a lawyer about filing a whistleblower complaint.

What to Do if You Think You May Have Evidence of Securities Fraud

If you think you may have evidence of securities fraud, speaking with a lawyer costs nothing, and it is the first step toward claiming the compensation you deserve. To learn more in a free and confidential consultation, contact us today.

Speak with an SEC Whistleblower Lawyer in Confidence

Our legal team represents SEC whistleblowers nationwide. If you have questions about coming forward, we have answers—and we can help you decide whether coming forward as an SEC whistleblower is the right choice. To schedule a free and confidential consultation at Spodek Law Group, please call 908-643-7005 or reach out online today.

Contact Spodek Law Group today for a free and confidential consultation about your SEC whistleblower case. Call 908-643-7005.