SEC Announces $4 Million Bounty to Foreign Whistleblower

The US Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission (SEC) has awarded an anonymous foreign Whistleblower Whistleblower A whistleblower is an individual who manages to provide information or activity within a private or public organization that is deemed illegal, unethical, or not correct. In many countries, including the United States, whistleblowers are protected by law and in some cases can even recoup rewards if their information leads to successful prosecution.In the context of the financial services industry, whistleblowers play a large role in oversight, helping unmask several episodes of illicit behavior A whistleblower is an individual who manages to provide information or activity within a private or public organization that is deemed illegal, unethical, or not correct. In many countries, including the United States, whistleblowers are protected by law and in some cases can even recoup rewards if their information leads to successful prosecution.In the context of the financial services industry, whistleblowers play a large role in oversight, helping unmask several episodes of illicit behavior Read this Term, who had come forward with information leading to an enforcement action with a regulatory bounty. The tipster is getting $4 million, in line with most payouts the Wall Street’s top regulator has made to tipsters since it distributing awards six years ago.

Committed to protecting the anonymity of informants, few details were available regarding the nature of the underlying facts or enforcement action or the identity of the whistleblower.

Monday’s announcement brings the whistleblower program’s total endowment to over $326 million since issuing its first award in 2012. SEC enforcement actions from tip-offs have resulted in nearly $1.7 billion in fines since the program’s inception in 2011.

The head of the SEC’s whistleblower program, Jane Norberg, stated: “Whistleblowers, whether they are located in the U.S. or abroad, provide a valuable service to investors and help us stop wrongdoing. This award recognizes the continued, important assistance provided by the whistleblower throughout the course of the investigation.”

Whistleblowing has become a staple of multiple US regulatory regimes, namely those of the US Commodity Futures Trading Commission (CFTC) and the SEC. Both entities have deployed a system of programs and rewards in a bid to help support and streamline investigations.

Whistleblowers who voluntarily provide information to the commission leading to a successful enforcement action of $1 million or more are entitled to between 10 and 30 percent of the money that the SEC recovers from those sanctions.