The Securities and Exchange Commission announced giving a $2 million award to a whistleblower who provided the agency with important information and helped the agency bring a successful enforcement action and allowed investors to recover much of their money.
Jane Norberg, Chief of the SEC’s Office of the Whistleblower commented:
Jane Norberg, SEC
The whistleblower’s information and assistance helped the SEC stop an ongoing fraud in its tracks.
The whistleblower’s tip had a substantial impact on the investigation, and aided the Commission’s ability to obtain an asset freeze and prevent the dissipation of investor funds.
So far, the agency has awarded over $450 million to 82 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.
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.