Whistleblower seeks Reward worth more than $5 Million
The Securities and Exchange Commission (SEC) made the announcement today that it will be awarding more than $5 million to a whistleblower whose information was instrumental in the successful enforcement action taken by the SEC.
The insider provided the SEC staff with a tip as well as additional information, which assisted them in developing their investigative strategy, identifying witnesses, and drafting document and information requests. Prior to providing information to the SEC, the whistleblower also reported concerns to the company’s management internally.
According to Creola Kelly, Chief of the SEC’s Office of the Whistleblower, “the whistleblower in this case provided helpful information and substantial ongoing assistance, saving the SEC time and resources while it was conducting its investigation.
Payments to whistleblowers come from an investor protection fund that was established by Congress. This fund receives all of its funding from monetary sanctions that lawbreakers in the securities industry are required to pay to the SEC. There has been no theft or withholding of funds from investors who have been harmed in order to pay whistleblower awards.
When whistleblowers voluntarily provide the Securities and Exchange Commission (SEC) with original, timely, and credible information that results in a successful enforcement action, they may be eligible for an award. When the monetary sanctions total more than one million dollars, awards for whistleblowers can range from 10 to 30 percent of the total amount collected.
The Dodd-Frank Act requires that the Securities and Exchange Commission (SEC) protect the confidentiality of whistleblowers and refrain from disclosing any information that could lead to the identity of a whistleblower.
Visit www.sec.gov/whistleblower to learn how to report a tip as well as obtain additional information regarding the whistleblower program.
To read more posts by NfoNews, click here.