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UNITED STATES OF AMERICA 

Before the 

SECURITIES AND EXCHANGE COMMISSION 

SECURITIES EXCHANGE ACT OF 1934 

Release No. 97826 / June 30, 2023 

WHISTLEBLOWER AWARD PROCEEDING 

File No. 2023-71 

In the Matter of the Claim for an Award 

in connection with 

Redacted

Notice of Covered Action 

Redacted

ORDER DETERMINING WHISTLEBLOWER AWARD CLAIM 

The Claims Review Staff (“CRS”) issued a Preliminary Determination in connection with 

the above-referenced Covered Action (the “Covered Action”) recommending that the 

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whistleblower award application submitted by (“Claimant”) be denied. 

Claimant filed a timely response contesting the Preliminary Determination. For the reasons 

discussed below, the Claimant’s award claim is denied. 

I. Background

A. The Covered Action

On the Commission filed settled administrative and cease-and-desist 

proceedings against (“Company”) alleging that the Company had violated 

the federal securities laws 

In settlement, was ordered to pay in disgorgement, prejudgment 

Redacted Redacted Redacted Redacted Redacted Redacted Redacted

interest, and civil penalties. 

On

Redacted

 the Office of the Whistleblower posted the Notice for the Covered 

Action on the Commission’s public website inviting claimants to submit whistleblower award 

applications within 90 days.1 Claimant filed a timely whistleblower award claim. 

See Exchange Act Rule 21F-10(a), 17 C.F.R. § 240.21F-10(a). 

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B. The Preliminary Determination 

The CRS issued a Preliminary Determination2 recommending that Claimant’s claim for 

an award in the Covered Action be denied. The Preliminary Determination stated that Claimant 

did not provide information that led to the success of the Covered Action because Claimant’s 

information did not cause the Commission to (i) commence an examination, (ii) open or reopen 

an investigation, or (iii) inquire into different conduct as part of a current Commission 

examination or investigation, and thereafter bring an action based, in whole or in part, on, 

conduct that was the subject of the claimant’s information under Rule 21F-4(c)(1) of the 

Exchange Act; or significantly contribute to the success of a Commission judicial or 

administrative enforcement action under Rule 21F-4(c)(2) of the Exchange Act. 

C. Claimant’s Response to the Preliminary Determination 

Claimant submitted a timely written response contesting the Preliminary Determination.3 

Claimant based the award claim on a tip that he/she had submitted to the Commission in

 (“Other Entity”), which was closed by the Commission’s 

Office of Market Intelligence with a disposition of “No Further Action” or “NFA”, and was not 

provided to investigative staff responsible for the Covered Action. Enforcement staff 

responsible for the Covered Action affirmed that they had not received any information from 

Claimant or had any communications with Claimant during the course of the Covered Action 

investigation. 

Redacted Redacted

Claimant principally argues: (1) that he/she provided information to the 

Redacted Redacted

and that the Commission’s action against the 

Company was based on an action brought by (2) that he/she provided information to 

staff in the Commission’s Office of the Whistleblower (“OWB”) also in *** (3) that the 

information he/she provided should have triggered a Commission investigation; (4) that he/she 

provided several tips to the Commission that were relevant to the allegations in the Covered 

Action; (5) that it is irrelevant that he/she did not have communications with the relevant 

investigative staff responsible for the Covered Action; and (6) he/she deserves a whistleblower 

award even if the investigative team responsible for the Covered Action did not receive his/her 

information. 

2 See Exchange Act Rule 21F-10(d), 17 C.F.R. § 240.21F-10(d). 

3 See Exchange Act Rule 21F-10(e), 17 C.F.R. § 240.21F-10(e). 

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II. Analysis 

To qualify for an award under Section 21F of the Exchange Act, a whistleblower must 

voluntarily provide the Commission with original information that leads to the successful 

enforcement of a covered action.5 Additionally, and as relevant here, original information will 

be deemed to lead to a successful enforcement action if either: (i) the original information caused 

the staff to open an investigation “or to inquire concerning different conduct as part of a current . 

. . investigation,” and the Commission brought a successful action based in whole or in part on 

conduct that was the subject of the original information;6 or (ii) the conduct was already under 

examination or investigation, and the original information “significantly contributed to the 

success of the action.”7 In determining whether the information “significantly contributed” to 

the success of the action, the Commission will consider whether the information was 

“meaningful” in that it “made a substantial and important contribution” to the success of the 

covered action.8 For example, the Commission will consider a claimant’s information to have 

significantly contributed to the success of an enforcement action if it allowed the Commission to 

bring the action in significantly less time or with significantly fewer resources, or to bring 

additional successful claims or successful claims against additional individuals or entities.9 

Claimant’s information did not cause the Enforcement staff to open the Covered Action 

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investigation. The record reflects that the investigation was opened in based on 

information from a source other than Claimant. 

Claimant’s information also did not cause the Enforcement staff to inquire into different 

conduct, and did not significantly contribute to the success of the Covered Action. Enforcement 

staff responsible for the Covered Action provided a supplemental declaration, which we credit, 

confirming that they did not receive or review any information from Claimant and had no 

Redacted

communications with him/her. 

Redacted

Enforcement staff also clarified that they did not receive 

Claimant’s information from nor did they receive any referrals or information from

 that were used in the Covered Action. Similarly, Enforcement staff responsible for the 

5 Exchange Act Section 21F(b)(1), 15 U.S.C. § 78u-6(b)(1). 

6 See Exchange Act Rule 21F-4(c)(1); 17 C.F.R. § 240.21F-4(c)(1). 

7 See Exchange Act Rule 21F-4(c)(2), 17 C.F.R § 240.21F-4(c)(2). 

8 Order Determining Whistleblower Award Claims, Exchange Act Rel. No. 90922 at 4 (Jan. 14, 

2021); see also Order Determining Whistleblower Award Claims, Exchange Act Rel. No. 85412 at 9 

(Mar. 26, 2019). 

Exchange Act Rel. No. 85412 at 8-9. 

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Covered Action did not receive Claimant’s information from OWB staff. The supplemental 

declaration also confirms that Enforcement staff did not receive or review the various tips 

referenced by Claimant in his/her response, as they were either closed with an NFA disposition 

or referred to other Enforcement staff in connection with other matters. As such, none of 

Claimant’s information was used in or otherwise contributed to the success of the Covered 

Action. 

Finally, we consider Claimant’s argument that he/she should receive an award even if the 

investigative team never received his/her information or had any communications with him/her, 

and that his/her tips should have triggered an investigation. As we have stated, “the standard for 

award eligibility is not what the staff would have, or could have done in hypothetical 

circumstances but, rather, what impact the whistleblower’s information actually had on the 

investigation.”10 

III. Conclusion 

Accordingly, it is ORDERED that Claimant’s whistleblower award claim be, and hereby 

is, denied. 

By the Commission. 

Vanessa A. Countryman 

Secretary 

Order Determining Whistleblower Award Claims, Exchange Act Rel. No. 92542 at 4 (Aug. 2, 

2021) (quoting Order Determining Whistleblower Award Claims, Exchange Act Rel. No. 90872 at 4 (Jan. 

7, 2021)) (internal quotation marks omitted). 

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