Yesterday, the U.S. Securities and Exchange Commission announced whistleblower awards totaling over $4 million to four anonymous individuals whose assistance was critical to an investigation into securities fraud.

In the first award order, the SEC wrote that one whistleblower (Claimant 1) internally reported concerns to his or her company multiple times before bringing information of fraud to Enforcement staff. Claimant 1’s information proved to be highly useful to the Commission, as it sparked the initial investigation into misconducts committed by the company in question. Another whistleblower (Claimant 2) also assisted the SEC in the investigation, but did not provide information as extensive as Claimant 1’s.

Claimant 1 received a whistleblower award of $2 million, while Claimant 2 received a whistleblower award of $150,000.

In the second award order, it was determined that two whistleblower reports, from Claimant 1 and Claimant 2, were significant enough to prompt the SEC to open an investigation into possible misconduct. However, Claimant 1 provided “more than limited assistance” while Claimant 2 did not.

Claimant 1 and Claimant 2 from the second award order received whistleblower awards of $1.1 million and $500,000, respectfully.

Established under the Dodd Frank Act, the SEC Whistleblower Program allows for whistleblowers with original information of securities fraud to share in the recovery of any penalties collected from successful enforcement actions.

Since issuing its first award in 2012, the SEC Whistleblower Office has awarded approximately $946 million to 190 individuals.

In order to remain fully anonymous and confidential as an SEC whistleblower, it is best practice to use a whistleblower attorney to file a Form TCR (Tip, Referral, Complaint). This will ensure that your company will not learn your identity throughout the filing process, or after an award has been issued.

"Today's awards underscore the important role that whistleblowers play in detecting and halting securities laws violations," said Emily Pasquinelli, Acting Chief of the SEC's Office of the Whistleblower. "Each of the whistleblowers provided high-quality information that made an important contribution to the success of the underlying enforcement action."