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Whistleblowers receive more than $2.5 million award from SEC



The Securities and Exchange Commission announced giving a more than $2.5 million award to joint whistleblowers who provided the agency with tip based largely on highly probative independent analysis of a public company’s filings led to several successful enforcement actions. The whistleblowers also provided helpful assistance early in the investigation, which helped save Commission time and resources.

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

Detailed analysis by outsiders of companies can have a significant impact on the enforcement of the federal securities laws. Today’s award demonstrates the Commission’s commitment to awarding individuals who provide high quality independent analysis that leads to successful enforcement actions.

Whistleblower

So far, the agency has awarded over $510 million to 92 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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Whistleblowers receive more than $2.5 million award from SEC

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