SEC Grants 100th Whistleblower Award, Tipster Receives $1.8 Million
- The company outsider reported significant information about ongoing securities law violations.
The Securities and Exchange Commission (SEC) recently announced that it has granted its 100th 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 each year. Whistleblowers are a necessary force in the fight against corruption, scams, fraud, and other forms of manipulation that can affect all levels of financial systems.The methods by which whistleblowers may bring allegations to light vary. This includes contacting a third-party outside of an accused organization such as the media, government, law enforcement, or those who are concerned. Whistleblowers assume a large amount of risk with such disclosures, often facing stiff reprisal and retaliation from those who are accused or alleged of wrongdoing.Whistleblower AwardsIn order to safeguard the identity and well-being of whistleblowers, the United States’ Securities and Exchange Commission (SEC) has installed an entire division towards these individuals.As of May 2020, the SEC has awarded over $396 million to 77 individuals since issuing its first award in 2012. All payments have been made out of an investor protection fund established by the US Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. 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. 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 each year. Whistleblowers are a necessary force in the fight against corruption, scams, fraud, and other forms of manipulation that can affect all levels of financial systems.The methods by which whistleblowers may bring allegations to light vary. This includes contacting a third-party outside of an accused organization such as the media, government, law enforcement, or those who are concerned. Whistleblowers assume a large amount of risk with such disclosures, often facing stiff reprisal and retaliation from those who are accused or alleged of wrongdoing.Whistleblower AwardsIn order to safeguard the identity and well-being of whistleblowers, the United States’ Securities and Exchange Commission (SEC) has installed an entire division towards these individuals.As of May 2020, the SEC has awarded over $396 million to 77 individuals since issuing its first award in 2012. All payments have been made out of an investor protection fund established by the US Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. 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. Read this Term award, with the most recent tipster, a company outsider, receiving an award of more than $1.8 million.
According to the US regulator’s statement on Monday, the whistleblower reported significant information about ongoing securities law violations, which resulted in successful enforcement action.
Commenting on the landmark, SEC Chairman Jay Clayton said in the statement: “Today’s award marks a milestone for the whistleblower program. This whistleblower is the 100th individual to receive an award under the program since its inception, and the 33rd individual awarded so far this year.
“The pace and the amounts of the awards in recent years underscore the Commission’s commitment to increasing the efficiency and effectiveness of the whistleblower program. We remain dedicated to working quickly to get more money into the hands of whistleblowers, including through the improvements that will be implemented as a result of the amendments approved by the Commission last week.”
SEC Grants $527 Million in Whistleblower Awards
Since issuing its first award in 2012, the US watchdog has given $527 million in awards to whistleblowers. The awards are made from an investor protection fund which was established by Congress and is financed entirely through monetary sanctions paid to the SEC by securities law violators.
In its statement on Monday, the SEC highlights that the money granted to whistleblowers has not been taken or withheld from harmed investors to pay the whistleblower awards. The value of the awards can range from 10 per cent to 30 per cent of the money collected when the monetary sanctions exceed $1 million.
“Today’s award demonstrates the success of the program and the important role that company outsiders can play in halting ongoing violations,” added Jane Norberg, Chief of the SEC’s Office of the Whistleblower in the statement.
“While many of our whistleblowers have been insiders, the agency also receives critical intelligence from company outsiders, like today’s whistleblower, whose swift reporting alerted staff to the violations that resulted in the success of this enforcement action.”
The Securities and Exchange Commission (SEC) recently announced that it has granted its 100th 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 each year. Whistleblowers are a necessary force in the fight against corruption, scams, fraud, and other forms of manipulation that can affect all levels of financial systems.The methods by which whistleblowers may bring allegations to light vary. This includes contacting a third-party outside of an accused organization such as the media, government, law enforcement, or those who are concerned. Whistleblowers assume a large amount of risk with such disclosures, often facing stiff reprisal and retaliation from those who are accused or alleged of wrongdoing.Whistleblower AwardsIn order to safeguard the identity and well-being of whistleblowers, the United States’ Securities and Exchange Commission (SEC) has installed an entire division towards these individuals.As of May 2020, the SEC has awarded over $396 million to 77 individuals since issuing its first award in 2012. All payments have been made out of an investor protection fund established by the US Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. 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. 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 each year. Whistleblowers are a necessary force in the fight against corruption, scams, fraud, and other forms of manipulation that can affect all levels of financial systems.The methods by which whistleblowers may bring allegations to light vary. This includes contacting a third-party outside of an accused organization such as the media, government, law enforcement, or those who are concerned. Whistleblowers assume a large amount of risk with such disclosures, often facing stiff reprisal and retaliation from those who are accused or alleged of wrongdoing.Whistleblower AwardsIn order to safeguard the identity and well-being of whistleblowers, the United States’ Securities and Exchange Commission (SEC) has installed an entire division towards these individuals.As of May 2020, the SEC has awarded over $396 million to 77 individuals since issuing its first award in 2012. All payments have been made out of an investor protection fund established by the US Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. 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. Read this Term award, with the most recent tipster, a company outsider, receiving an award of more than $1.8 million.
According to the US regulator’s statement on Monday, the whistleblower reported significant information about ongoing securities law violations, which resulted in successful enforcement action.
Commenting on the landmark, SEC Chairman Jay Clayton said in the statement: “Today’s award marks a milestone for the whistleblower program. This whistleblower is the 100th individual to receive an award under the program since its inception, and the 33rd individual awarded so far this year.
“The pace and the amounts of the awards in recent years underscore the Commission’s commitment to increasing the efficiency and effectiveness of the whistleblower program. We remain dedicated to working quickly to get more money into the hands of whistleblowers, including through the improvements that will be implemented as a result of the amendments approved by the Commission last week.”
SEC Grants $527 Million in Whistleblower Awards
Since issuing its first award in 2012, the US watchdog has given $527 million in awards to whistleblowers. The awards are made from an investor protection fund which was established by Congress and is financed entirely through monetary sanctions paid to the SEC by securities law violators.
In its statement on Monday, the SEC highlights that the money granted to whistleblowers has not been taken or withheld from harmed investors to pay the whistleblower awards. The value of the awards can range from 10 per cent to 30 per cent of the money collected when the monetary sanctions exceed $1 million.
“Today’s award demonstrates the success of the program and the important role that company outsiders can play in halting ongoing violations,” added Jane Norberg, Chief of the SEC’s Office of the Whistleblower in the statement.
“While many of our whistleblowers have been insiders, the agency also receives critical intelligence from company outsiders, like today’s whistleblower, whose swift reporting alerted staff to the violations that resulted in the success of this enforcement action.”