The United States Securities and Exchange Commission (SEC) made an announcement today that it will award more than $28 million to joint whistleblowers who assisted in an SEC enforcement action by providing essential information and assistance.
The Instrumental Role of Whistleblowers
The detailed information that was provided by the joint whistleblowers was the impetus for the SEC staff to begin their investigation, and it was also a significant contributor to the success of the action. They contributed a significant amount of analysis as well as ongoing assistance, which resulted in the reimbursement of millions of dollars to investors who had suffered losses.
According to Creola Kelly, Chief of the SEC’s Office of the Whistleblower, “the latter play an instrumental role in helping the SEC detect and prosecute wrongdoing and in protecting investors and the capital markets.”
They play an instrumental role in helping the SEC detect and prosecute wrongdoing and in protecting investors and the capital markets.” This award is a testament to the invaluable contribution that whistleblowers make to the greater good of society.
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.
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