SEC Awards Over $1.6 Million to Whistleblower

Washington DC (STL.News) The Securities and Exchange Commission today announced an award of more than $1.6 million to a whistleblower whose information tipped the agency to securities law violations and helped form part of the basis for charges brought in a successful enforcement action.  In addition to the tip, the whistleblower provided helpful assistance early in the investigation, preserving Commission time and resources.

“The violations would have been difficult to detect without the whistleblower’s information and assistance,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower.  “This matter highlights the importance of the SEC’s whistleblower program to the agency’s enforcement efforts and to its ability to maximize staff resources.”

The SEC has awarded approximately $395 million to 74 individuals since issuing its first award in 2012. 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.  Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action.  Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million.

As set forth in the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers and does not disclose information that could reveal a whistleblower’s identity.

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