In May 2016, the SEC clarified that whistleblowers are encouraged to come forward and report allegations of potential securities laws violations even if they think the SEC may already be looking into the violation. Andrew Ceresney, director of the SEC’s Division of Enforcement, stated, “whistleblowers can receive an award not only when their tip initiates an investigation, but also when they provide new information or documentation that advances an existing inquiry.” Driving this point home, on May 13, 2016, the SEC announced a $3.5 million award to a company employee whose tip bolstered an ongoing investigation with additional evidence of wrongdoing that strengthened the SEC’s case.

Originally, the SEC considered the whistleblower’s information insufficient to justify an award. The claimant, however, contested the preliminary determination with the support of the SEC Enforcement Division staff. In reversing the preliminary decision and making such a substantial award, the SEC recognized the importance of whistleblower information that not only leads to opening an investigation, but also information that “significantly contribute[s]” to an ongoing investigation. In announcing the award, the SEC additionally stated it had considered “unique hardships” experienced by the whistleblower in determining the award amount, noting that the tipster had been unable to find work primarily as a result of the whistleblowing.