The Securities and Exchange Commission (SEC) announced giving more than $300,000 to a whistleblower, whose information and continuing assistance significantly contributed to a successful enforcement action.
The whistleblower became aware of the potential securities law violations in connection with audit-related responsibilities. Although individuals with audit or compliance responsibilities are generally not eligible for awards, a whistleblower who reasonably believes that an entity is engaging in conduct that would impede the investigation falls within one of the exceptions to that rule. In this case, the whistleblower had a reasonable basis to believe that the entity would impede the Commission’s investigation. This is the fourth time the agency has paid a whistleblower with internal audit or compliance related responsibilities.
Jane Norberg, Chief of the SEC’s Office of the Whistleblower said:
This award is an example of the important role that audit and compliance professionals can play in assisting the Commission’s enforcement efforts, especially when the entity is attempting to thwart an investigation. The whistleblower attempted to remedy the conduct and provided exceptional assistance to the enforcement staff.
