Whistleblower awarded $7 million


The Securities and Exchange Commission announced last week a more than $7 million reward to a whistleblower who provided crucial information and assistance in a SEC action, including the identification of witnesses.

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

Jane Norberg, SEC

The whistleblower showed great tenacity and effort in attempting to expose the misconduct that was the basis for the SEC’s action. The whistleblower’s information and assistance helped the SEC staff devise an investigative plan, craft document requests, and ultimately bring an important enforcement action focusing on serious financial abuses.

So far, the agency has awarded around $394 million to 73 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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