SEC awards whistleblower with over $10 million

Steffy Bogdanova
October 30, 2020 11:15 am

The Securities and Exchange Commission (SEC) announced giving more than $10 million award to a whistleblower who prompted the opening of an investigation and provided substantial, ongoing assistance to SEC staff throughout the investigation. The whistleblower also provided key evidence, helped decipher communications and distilled complex issues.

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

After reporting internally and receiving no satisfactory response, the whistleblower alerted the agency to the securities violation and played a critical role during the investigation. Today’s award demonstrates the significant contributions that whistleblowers can make to substantially assist investigations and help the Commission save time and resources.

Whistleblower

So far, the agency has awarded over $687 million to total of 109 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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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.
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