SEC whistleblower earns $1 million payout
To date, the SEC has paid $162 million to informants.
The Securities and Exchange Commission (SEC) has awarded one whistleblower more than $1 million for providing new information about a legal violation by a registered company that impacted retail customers.
The SEC’s Office of the Whistleblower chief Jane Norberg said the individual earned the immense cash reward by providing the department with substantial corroborating documentation of a serious securities infraction.
“Today’s award reflects the impact that whistleblower information can have… we welcome high-quality information about potential securities-law violations from those in and outside a company,” she said.
To date, the SEC has handed over more than $162 million to 47 different whistleblowers.
However, the identity of these informants is confidential. The SEC says it carefully protects the anonymity of whistleblowers and does not disclose information which may directly or indirectly expose these individuals.
The commission deems whistleblower information as eligible for reward when a person or persons voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action.
These payments range from 10-30% of the total money collected when monetary sanctions exceed $1 million.
All payouts are sourced from an investor protection fund established by Congress and financed by monetary sanctions paid to the SEC by the convicted securities violators. No money is withheld from harmed investors.
For information about the whistleblower program and how to report a tip, you can visit the SEC’s website.