SEC awards $3 million to 2 whistleblowers, totals $741 million since 2012

Rick Steves

While “crime never pays” is far from being absolute truth, “no one likes a tattletale” has completely lost its meaning in the United States. The SEC likes tattletales and it has never been more rewarding to expose criminals.

Reg SCI rules by SEC addressed in new Exegy Inc. package

The Securities and Exchange Commission has recently awarded two separate whistleblowers with almost $3 million in total. The regulator has awarded approximately $741 million to 136 individuals since issuing its first award in 2012, with all payments being made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators.

The first whistleblower received over $2.2 million for providing important, high-quality information which helped the SEC bring an enforcement action that resulted in the return of millions of dollars to harmed clients.

The second was awarded with almost $700,000 for having alerted the financial watchdog to a fraudulent reporting scheme and for providing critical evidence which helped identify key documents and witnesses.

Jane Norberg, Chief of the SEC’s Office of the Whistleblower, said: “Both whistleblowers who received awards today raised their concerns internally and then timely reported those concerns to the Commission. The return of millions of dollars to harmed clients in one matter, and the uncovering of a fraudulent scheme in the other matter, underscore the tremendous value that whistleblowers provide.”

Whistleblower awards are never funded with money taken or withheld from harmed investors, according to the law. The SEC awards whistleblowers who voluntarily provide the SEC with original, timely, and credible information that leads to successful enforcement action. Awards range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million.

Both whistleblowers, as all the other 136 individuals, will remain anonymous as the SEC protects the confidentiality of their identity.

The recent GBP Capital ponzi scheme scandal is proof of how important whistleblowers are to the success of the SEC’s mission. David Gentile’s $1.7 billion fraudulent enterprise was able stay running for four years on account of scare tactics to keep people from blowing the whistle. That allowed Gentile, with connections to the Church of Scientology and Russian organized crime, to sustain high credibility among his Wall Street peers and the media.

Whistleblower protections are a cornerstone of the SEC, which is committed to protecting whistleblowers from retaliation and attempts to stifle the free flow of information to the Commission about possible securities law violations.

David Gentile’s ponzi scheme defrauded 17,000 investors, most of which are retirees concentrated in Texas, Florida, and Arizona.

Read this next

Retail FX

Weekly Roundup: John Oliver rips into MetaTrader, Binance to pay $10 billion

Welcome to this week’s roundup, where we delve into the latest developments in the Forex, Fintech, and cryptocurrency markets. Stay ahead of the curve with our comprehensive overview of the week’s most impactful events and trends across these dynamic sectors.

Retail FX

Lark Funding reopens to US traders, MyFundedFX picks cTrader

Canada-based prop trading firm Lark Funding announced it will once again welcome clients from the United States.

Institutional FX

Cboe FX volume falls to lowest level since summer

Cboe’s institutional spot FX platform, known as Cboe Spot, today announced its trading volume for the month ending February 2024, which took a step back after a strong rebound in December.

Retail FX

ThinkMarkets secures lucrative DFSA license in Dubai

Melbourne-based broker ThinkMarkets has secured a license from the Dubai Financial Services Authority (DFSA) after it has already incorporated its new subsidiary in the Dubai International Financial Center (DIFC).

Digital Assets

New Horizen Lays Out Its Vision Of A Modular, Proof Verification Layer For Web3 Networks

Horizen is forging a new path for the future of blockchain with its New Horizen initiative, which is building a modular Proof Verification layer that’s dedicated to verifying cryptographic proofs for any settlement layer, beginning with Ethereum. 

Digital Assets

Karma3 Labs Raises a $4.5M Seed Round Led By Galaxy and IDEO CoLab to Build OpenRank, a Decentralized Reputation Protocol

Using OpenRank, developers and web3 companies can build consumer apps where people can discover, use, fund, read, or buy something on-chain without worrying about getting spammed or scammed.

Digital Assets

Worldcoin down as Elon Musk sues OpenAI CEO Sam Altman

Worldcoin’s (WLD) token dropped following news of a lawsuit against related company OpenAI. The lawsuit was filed by Elon Musk and accused OpenAI and CEO Sam Altman of breach of contract.

Institutional FX

Exegy’s Liquidity Lamp adds intraday data to outperform S&P 500 by 31.8%

Exegy has incorporated intraday signals into its AI-powered iceberg order detection tool, Liquidity Lamp. By adding intraday data to a baseline mean reversion strategy, Exegy’s model outperformed the baseline by 10.5% and the S&P 500 (SPY) by 31.8%, respectively in the out-of-sample testing.

Industry News

Think Elon Musk backed your crypto exchange? ASIC’s latest reveal may shock you

In an absolutely shocking turn of events that nobody could have possibly seen coming, the Australian Securities and Investments Commission (ASIC) has bravely stepped forward to reveal that, yes, those videos of Elon Musk passionately endorsing a cryptocurrency exchange are as fake as a three-dollar bill.

<