Whistleblower Receives Over $1.6 Million Award from SEC

The US Securities and Exchange Commission (SEC) announced that it has awarded a whisteblower with over $1.6 million for his tip significantly contributed to the success of an enforcement action.

According to the release, the whistleblower produced critical information about an ongoing fraudulent scheme and provided extensive assistance to the investigative staff, including by participating in meetings and furnishing high-quality evidence.

“Today's award demonstrates the value of whistleblowers to the SEC's enforcement efforts,” said Jane Norberg, Chief of the SEC's Office of the Whistleblower.  “We hope that this award encourages others with information regarding possible securities laws violations to report to the Commission.”

The SEC has awarded approximately $736 million to 128 individuals since issuing its first award in 2012. To be eligible for award, a whistleblower needs to voluntarily provide the commission with reliable information that leads to successful enforcement action. The awards range between 10 and 30 % of the money collected by SEC when the sanction is for more than $1 million.

As set forth in the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers and does not disclose information that could reveal a whistleblower's identity.