The Securities and Exchange Commission announced giving a more than $10 million award to a whistleblower who provided the agency with important information which led to successful enforcement actions.
Jane Norberg, Chief of the SEC’s Office of the Whistleblower commented:
This award recognizes the persistent efforts of the whistleblower to expose serious financial misconduct. This whistleblower also provided extensive and ongoing assistance to the investigative team over the course of the investigation, including identifying witnesses and helping staff understand complex fact patterns and issues related to the matters under investigation.
So far, the agency has awarded over $520 million to 94 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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