SEC Awards Over $1.25 Million to Whistleblower
Washington, D.C--(Newsfile Corp. - August 31, 2020) - The Securities and Exchange Commission today announced an award of over $1.25 million to a whistleblower whose significant information prompted the agency to initiate a cause examination and bring an enforcement action that resulted in the return of millions of dollars to harmed investors.
“The whistleblower’s expeditious reporting alerted the agency to previously unknown securities violations,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “This whistleblower’s vigilance and prompt reporting helped the agency move quickly to protect investors, resulting in the return of millions of dollars to harmed investors.”
The SEC has awarded over $507 million to 90 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 percent to 30 percent of the money collected when the monetary sanctions exceed $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.
For more information about the whistleblower program and how to report a tip, visit www.sec.gov/whistleblower.