SEC awards almost $600K to a whistleblower

The Securities and Exchange Commission (SEC) announced giving almost $600,000 to a whistleblower whose tip led to the success of an enforcement action. The whistleblower considerably contributed to an open investigation by providing detailed and highly valuable information resulting in critical investigative leads.

Jane Norberg, Chief of the SEC’s Office of the Whistleblower said:

The whistleblower met with staff multiple times and provided substantial assistance to the investigation that led to the SEC’s enforcement action. Since the beginning of October, the Commission has awarded 28 individuals over $176 million in whistleblower awards, which already surpasses the total dollar amount awarded in the entirety of any prior fiscal year. We hope these awards continue to encourage individuals with information regarding possible securities laws violations to report to the Commission.


So far, the agency has awarded over $738 million to total of 134 individuals 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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