_________________________________________________________________________ 

UNITED STATES OF AMERICA 

Before the 

SECURITIES AND EXCHANGE COMMISSION 

SECURITIES EXCHANGE ACT OF 1934 

Release No. 99916 / April 8, 2024 

WHISTLEBLOWER AWARD PROCEEDING 

File No. 2024-13 

_________________________________________________________________________ 

In the Matter of the Claims for an Award 

in connection with 

Redacted

Notice of Covered Action 

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ORDER DETERMINING WHISTLEBLOWER AWARD CLAIM 

(the “Covered Action”); (ii) the Commission order 

that (the 

“ Action”), be deemed to have arisen from the same nucleus of operative facts as the 

(i) (“Claimant”) receive a whistleblower award of over $750,000, which 

represents percent ( %) of the monetary sanctions collected in 

Redacted Redacted Redacted Redacted Redacted Redacted ***

The Claims Review Staff (“CRS”) issued Preliminary Determinations recommending that 

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Covered Action for purposes of determining payment on the award; (iii) the Commission treat 

and 

(the “Criminal Actions” or “Related Actions”) as “related actions” 

under Exchange Act Rule 21F-3(b); and that (iv) Claimant receive an award of over $375,000, 

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percent ( ***which represents %) of the remaining monetary sanctions collected in the 

Related Actions. Claimant provided written notice of Claimant’s decision not to contest the 

Preliminary Determinations. The recommendations of the CRS are adopted. 

Covered Action1

The record demonstrates that Claimant voluntarily provided original information to the 

The Commission has deemed that the Covered Action include a second proceeding, the 

Action, which arose out of the same nucelus of operative facts as the proceeding in File No. 

§ 240.21F-4(d).

. See 17 C.F.R. 

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1 

1 
 

 

 

 

 

 

 

 

Commission that led to the successful enforcement of the referenced Covered Action pursuant to 

Section 21F(b)(1) of the Exchange Act and Rule 21F-3(a) promulgated thereunder, and that 

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percent ( ***Claimant receive an award of %) of the monetary sanctions collected in the 

Covered Action.2 

Exchange Act Rule 21F-6(c) establishes a presumption of a statutory maximum award 

where (1) the maximum award would be $5 million or less and (2) none of the negative award 

factors under Rule 21F-6(b)—i.e., culpability, unreasonable reporting delay, or interference with 

an internal compliance and reporting system—are present and Exchange Act Rule 21F-16 

regarding culpable whistleblowers does not apply.3 The Commission may depart from the 

presumption if (1) the assistance provided by the whistleblower was, “under the relevant facts 

and circumstances, limited,” or (2) a maximum award “would be inconsistent with the public 

interest, the promotion of investor protection, or the objectives of the whistleblower program.”4 

The presumption, however, does not apply here due to at least one negative factor – culpability. 

Claimant participated in the misconduct by following instructions to 

 to lure and deceive investors, which 

Redacted Redacted

contributed to ongoing investor harm, and waited to report to the Commission until after 

 ended. 

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Accordingly, in determining the amount of award to recommend, the Commission 

considered the following factors set forth in Rules 21F-6(a) and (b) of the Exchange Act as they 

apply to Claimant: (1) the significance of information provided to the Commission; (2) the 

assistance provided in the Commission action; (3) law enforcement interest in deterring 

violations by granting awards; (4) participation in internal compliance systems; (5) culpability; 

(6) unreasonable reporting delay; and (7) interference with internal compliance and reporting 

systems. 

In reaching the recommended award percentage, the Commission considered that: 

Claimant’s initial information alerted Enforcement staff to the misconduct, prompting the 

opening of the investigation, and Claimant provided additional information and continuing 

assistance that significantly contributed to the Covered Action; Claimant ignored his/her 

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suspicions, waiting until after ended to report to the Commission; and was 

2 Although Claimant did not include the requisite whistleblower declaration with Claimant’s initial TCR, 

Claimant is eligible for an award under Rules 21F-4(c)(2) and 21F-9(e) as Claimant submitted a second TCR with 

the requisite declaration within 30 days of providing new information to the Commission that significantly 

contributed to the success of the Covered Action. See 17 C.F.R. § § 21F-4(c)(2) and 21F-9(e). 

3 See Rule 21F-16, 17 C.F.R. § 240.21F-16. 

4 Rule 21F-6(c)(1)(iv), 17 C.F.R. § 240.21F-6(c)(1)(iv). 
 

 

 

 

 

 

 

 

 

culpable by participating in the misconduct, which facilitated ongoing investor harm.5

Criminal Actions 

The record demonstrates that: (i) the Criminal Actions constitute “related actions” to the 

Covered Action within the meaning of Exchange Act Rule 21F-3(b);6 (ii) the original 

information that Claimant provided to the Commission also led to the successful enforcement of 

the related Criminal Actions; and (iii) Claimant has satisfied the procedural requirements for 

applying for a related action award.7

 For the same reasons discussed above, the record 

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percent ( ***demonstrates that Claimant receive an award of %) of the monetary sanctions 

collected in the related Criminal Actions.8 

Accordingly, it is hereby ORDERED that Claimant shall receive an award of 

percent ( %) of the monetary sanctions collected in the Covered Action and an award of 

percent ( %) of the remaining monetary sanctions collected in the Related Actions. 

Redacted *** Redacted ***

By the Commission. 

Vanessa A. Countryman

Secretary 

5 In the Covered Action, in 

ordered the defendant to pay , which was deemed satisfied by 

the criminal ordered against the defendant, of which the criminal authorities 

collected . In addition, the Commission collected from the Action. 

Redacted Redacted Redacted Redacted Redacted *** Redacted

6 A related action “is a judicial or administrative action that is brought by,” among other agencies, the United 

States Department of Justice. See Rule 21F-3(b)(1), 17 C.F.R. § 240.21F-3(b)(1). 

7 See Rule 21F-11(b), 17 C.F.R. § 240.21F-11(b). 

8 The Commission Rules do not permit a claimant to obtain a “double recovery.” After deducting the 

criminal collections that count toward the Covered Action award, the remaining collections from the Related 

Redacted

Actions total .