Thursday, April 22, 2021
Whistleblower Developments is a periodic report covering significant cases, decisions, proposals, and legislation related to whistleblower statutes and how they may impact your business. Recent developments include:
SEC Whistleblower Program Awards Total Over $23 Million in the First Quarter of 2021, Including Award Based on DOJ Non-Prosecution Agreement
Although its awards were substantially lower than those during the record-setting quarter at the end of 2020, the SEC Whistleblower Program distributed sizable awards in the first quarter of 2021 to whistleblowers whose information led to an enforcement actions. Notable awards issued this quarter include the following:
On February 23, 2021, the SEC announced an award of more than $9.2 million to a whistleblower who provided information that led to successful related actions by the U.S. Department of Justice, including a non-prosecution agreement (NPA) or deferred prosecution agreement (DPA). This is the first SEC award based on DPAs or NPAs, as made permissible by a final rule that went into effect on December 7, 2020. 85 Fed. Reg. 70938, Rule 21F-4(d)(3) (providing DPAs/NPAs are “administrative actions” and the money paid thereunder comprises “monetary sanctions” for purposes of the SEC Whistleblower Program). The rule anticipated it would result in more rewards and “enhance the incentives for whistleblowers to come forward in a timely manner to the extent that it signals to prospective whistleblowers that a wider array of enforcement resolutions may result in awards.”