So far, the agency has awarded over $901 million to a total of 163 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 the 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 million.
According to the Dodd-Frank Act, SEC must protect the identity of the whistleblower and not disclose any information that could reveal it.
The SEC announced in an official press release that a sales agent based at 1 Global Capital, LLC, Roy Y. Gagaza, was charged due to substantial links being found concerning the trading of unregistered securities of 1 Global.
Earlier in May, the SEC awarded a whistleblower with $3.6 million for providing information and assistance significant to successful SEC enforcement action.
