Last week the Securities and Exchange Commission announced awarding $2 million to a whistleblower who provided vital information for an ongoing SEC investigation.
Jane Norberg, Chief of the SEC’s Office of the Whistleblower commented:
Jane Norberg, SEC
The whistleblower’s actions in this matter were extraordinary.
The whistleblower expeditiously reported the information to the Commission and provided valuable assistance despite implied threats from the wrongdoers.
So far, the agency has awarded over $398 million to 78 individuals for their help since the first award was issued in 2012. Payment of the awards is taken out of an investor protection fund set up by Congress. It is financed through monetary sanctions of security law violations paid to SEC.
To be eligible for award, a whistleblower needs to voluntarily provide the commission with reliable information that leads to successful enforcement action. The awards range between 10 and 30 % of the money collected by SEC when the sanction is for more than $1 million.
According to the Dodd-Frank Act, SEC must protect the identity of the whistleblower and not disclose any information that could reveal it.
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