SEC Awards Over $28 Million to Whistleblower

Washington, DC (STL.News) The Securities and Exchange Commission today announced an award of over $28 million to a whistle-blower who provided significant information that aided the SEC in bringing a successful enforcement action.  The whistle-blower internally reported information that prompted the company to initiate an internal investigation, and saved the staff time and resources by providing testimony and identifying a key witness.

“In the past month alone, the Commission has awarded four whistle-blowers over $150 million for their important contributions to the Commission’s efforts to detect wrongdoing and protect investors and the marketplace,” said Jane Norberg, Chief of the SEC’s Office of the Whistle-blower.  “I hope our recent awards will continue to incentivize whistle-blowers to come forward to report potential fraud or other wrongdoing.”

The SEC has awarded approximately $715 million to 110 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 whistle-blower awards.  Whistle-blowers 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. Whistle-blower 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 whistle-blowers and does not disclose information that could reveal a whistle-blower’s identity.