The U.S. Securities and Exchange Commission announced on Tuesday that it has awarded more than $4.1 million to a whistleblower who provided key original information that led to a successful enforcement action under the agency’s Dodd-Frank powers.
The award will be the third made in a week by the SEC’s six-year-old whistleblower office. The top US regulator forks the decent sum to a former company insider who provided information that led directly to enforcement in an undisclosed securities case.
The SEC said the latest whistleblower alerted the agency to a widespread, multi-year securities law violation and continued to provide important information and assistance throughout its investigation.
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The SEC is required by law to protect whistleblowers’ identities, which results in a dearth of information being released with regard to the tipsters and the frauds they help the government uncover.
The SEC’s scheme awards whistleblowers who voluntarily provide information to the Commission leading to a successful enforcement action of $1 million or more. The rewards range from 10% to 30% of the amount of money collected from the relevant securities case. In addition, the award amount might be higher if the whistleblower reported the violations in a more timely fashion.
Jane Norberg, Chief of the Office of the Whistleblower, commented: “Company insiders often have valuable information that can help the SEC halt an ongoing securities law violation and better protect investors. The breadth of the SEC’s whistleblower program is demonstrated by this case, where the whistleblower, a foreign national working outside of the United States, affirmatively stepped forward to shine a light on the wrongdoing.”