The Securities and Exchange Commission (SEC) announced awarding a whistleblower with nearly $2.5 million.
The US regulator granted the award to a whistleblower whose information and ongoing assistance to the staff significantly contributed to the success of an SEC enforcement action.
Jane Norberg, Chief of the SEC’s Office of the Whistleblower said:
The whistleblower in this matter provided key evidence that supported charges related to a breach of fiduciary duties owed to investors. This award highlights the impact whistleblower information has on the SEC’s ability to enforce the federal securities laws and the value whistleblowers can offer to the investing public.
So far, the agency has awarded over $762 million to a total of 148 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 the 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.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.