SEC Awards $4 Million to Whistleblower

April 26, 2017

The Securities and Exchange Commission has awarded nearly $4 million to a whistleblower who tipped the agency with about serious misconduct and provided additional assistance during the ensuing investigation, including industry-specific knowledge and expertise.

“Not only did this whistleblower step forward and report suspicious conduct, but continued to help after we opened our investigation,” said Jane Norberg, chief of the SEC’s Office of the Whistleblower. “Whistleblowers with specialized experience or expertise can help us expend fewer resources in our investigations and bring enforcement actions more efficiently.”

The SEC whistleblower program was enacted as part of the Dodd-Frank legislation.

Approximately $153 million has now been awarded to 43 whistleblowers who became eligible for an award after voluntarily providing the SEC with original and useful information that led to successful enforcement actions.

In January, a whistleblower got $5.5 million. In 2014, SEC gave a record $30 million to whistleblower.

According to the SEC, enforcement actions from whistleblower tips have resulted in more than $953 million in financial remedies against wrongdoers.

By law, the SEC does not disclose information that might directly or indirectly reveal a whistleblower’s identity or the case involved. Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million. All payments are made out of an investor protection fund established by Congress that is financed through monetary sanctions paid to the SEC by securities law violators.

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