Whistleblower Pockets $4 Million SEC Award
A whistleblower who tipped the agency with information about serious securities misconduct—which was not identified by the U.S. Securities and Exchange Commission—was rewarded with a $4 million award.
April 26, 2017 at 02:48 PM
3 minute read
The U.S. Securities and Exchange Commission is awarding nearly $4 million to a whistleblower who tipped the agency with information about serious securities misconduct.
The money is a little more than average for an SEC whistleblower award. Since the program began in 2011, the agency has given out some $153 million to 43 whistleblowers, including this one, who voluntarily provided original and useful information that led to successful enforcement actions.
At least three awards have reached the $20 million to $30 million range, with the largest being $30 million awarded in 2014.
The nearly $4 million award ties with another award on the 10 largest list, according to SEC figures.
The unidentified whistleblower also provided additional assistance during the ensuing investigation, including industry-specific knowledge, the agency said in announcing the award Tuesday. The agency did not say what industry was involved.
“Not only did this whistleblower step forward and report suspicious conduct, but continued to help after we opened our investigation,” said a statement from Jane Norberg, chief of the SEC's Office of the Whistleblower.
“Whistleblowers with specialized experience or expertise can help us expend fewer resources in our investigations and bring enforcement actions more efficiently.”
Whistleblower awards can range from 10 percent to 30 percent of the funds 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, the SEC said.
Copyright National Law Journal. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The U.S. Securities and Exchange Commission is awarding nearly $4 million to a whistleblower who tipped the agency with information about serious securities misconduct.
The money is a little more than average for an SEC whistleblower award. Since the program began in 2011, the agency has given out some $153 million to 43 whistleblowers, including this one, who voluntarily provided original and useful information that led to successful enforcement actions.
At least three awards have reached the $20 million to $30 million range, with the largest being $30 million awarded in 2014.
The nearly $4 million award ties with another award on the 10 largest list, according to SEC figures.
The unidentified whistleblower also provided additional assistance during the ensuing investigation, including industry-specific knowledge, the agency said in announcing the award Tuesday. The agency did not say what industry was involved.
“Not only did this whistleblower step forward and report suspicious conduct, but continued to help after we opened our investigation,” said a statement from Jane Norberg, chief of the SEC's Office of the Whistleblower.
“Whistleblowers with specialized experience or expertise can help us expend fewer resources in our investigations and bring enforcement actions more efficiently.”
Whistleblower awards can range from 10 percent to 30 percent of the funds 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, the SEC said.
Copyright National Law Journal. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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