SEC Awards Over $1 Million to Whistleblower
The Securities and Exchange Commission yesterday announced an award of more than $1 million to a whistleblower whose information and assistance led to multiple successful SEC enforcement actions.
The whistleblower provided SEC staff with valuable information and ongoing assistance, which included participating in interviews with the staff.
Emily Pasquinelli, Acting Chief of the SEC’s Office of the Whistleblower said, "The whistleblower played a critical role in the SEC bringing these important enforcement actions. The whistleblower's information prompted the opening of the investigation, and their continued cooperation saved significant SEC staff time and resources."
The SEC has awarded approximately $938 million to 179 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. Whistleblower awards can range from 10 to 30% of the money collected when the monetary sanctions exceed $1 million.
As Fazzaco reported earlier, commissioners of the SEC Hester Peirce and Elad Roisman have been advocating the institution to pay more attention to crafting regulation for emerging areas, digital assets included, rather than overhauling existing rules.
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