SEC Awards $3.5 Million to Whistleblower
The U.S. Securities and Exchange Commission (SEC) recently announced that a whistleblower has been awarded roughly $3.5 million for coming forward with meaningful information that led to an SEC enforcement action.
So far the agency’s whistleblower program has awarded roughly $135 million to 36 whistleblowers since issuing its first award in 2012. The SEC enforcement actions from whistleblower tips have resulted in more than $874 million in financial remedies.
Jane Norberg, Chief of the SEC’s Office of the Whistleblower, commented:
Whistleblowers do a tremendous service to the investing public and we will continue to reward those who come forward with valuable tips that help us bring successful cases against those who violate the securities laws.
By law, the SEC protects the confidentiality of whistleblowers and does not disclose information that might directly or indirectly reveal a whistleblower’s identity.
Whistleblowers may be eligible for an award when they voluntarily provide the SEC with unique and useful information that leads to a successful enforcement action. Whistleblower awards can range from 10% to 30% of the money collected when the monetary sanctions exceed $1 million.
All of the payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards.