Consumer Fraud

Whistleblower Awarded Nearly $900,000 For Providing Tips To SEC

SEC Office of the Whistleblower wikipedia image 342x210 Whistleblower Awarded Nearly $900,000 For Providing Tips To SECThe Securities and Exchange Commission (SEC) announced an award of more than $900,000 Friday to a whistleblower who provided information that enabled the agency to take multiple enforcement actions against securities law violators and fraudsters.

The award was the second the agency announced within the week. On Dec. 9, the agency announced that it had awarded a whistleblower approximately $3.5 million for providing information that resulted in an investigation and subsequent enforcement action.

“With the issuance of this second award in less than one week, we hope to continue to encourage individuals to submit high-quality tips that we can leverage to enforce the law and protect investors, and they can receive significant financial rewards for their valuable contributions to a case,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower.

Since the SEC’s whistleblower program was launched in 2011, the agency has awarded more than $136 million to 37 whistleblowers. The SEC rewards whistleblowers who voluntarily provide original and useful information that helps regulators crack down on fraud and other misconduct harmful to investors.

By law, the SEC protects the confidentiality of whistleblowers and does not disclose information that might directly or indirectly reveal a whistleblower’s identity. This rule protects the whistleblower’s career and encourages other potential whistleblowers with inside evidence pointing to securities violations and fraud to step forward.

Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million.  All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards.

Sources:
U.S. Securities and Exchange Commission
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