SEC Awards Over $1.6 Million to Whistleblower
According to The Securities and Exchange Commission on March 23, the regulator awarded 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. The whistleblower also reportedly provided helpful assistance early in the investigation.
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. When the monetary sanctions exceed $1 million, whistleblower awards can range from 10 percent to 30 percent of the money collected.
The SEC protects the confidentiality of whistleblowers and does not disclose information that could reveal a whistleblower’s identity, as set forth in the Dodd-Frank Act.
For more information about the whistleblower program and how to report a tip, visit www.sec.gov/whistleblower.
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The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.
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Tags: SEC whistleblower, SEC whistleblower lawyer, Whistleblower award Last modified: April 8, 2020