Whistleblowers must voluntarily submit original information to be eligible for an award. Information already known to the SEC, whether from an earlier whistleblower or from the SEC’s own investigations, will not yield a reward. Filing as soon as possible is therefore crucial. Furthermore, the SEC will only pay out awards if they obtain monetary sanctions exceeding $1 million.
While anyone may report to the SEC, the individual’s background may also determine their eligibility to receive an award. If you have compliance responsibilities in the target company, the SEC may deem you ineligible for an SEC whistleblower award. There are notable exceptions to this general rule.