SEC Awards Nearly $600,000 to Whistleblower

The Securities and Exchange Commission today announced an award of nearly $600,000 to a whistleblower whose tip led to the success of an enforcement action.  The whistleblower substantially contributed to an open investigation by providing detailed and highly valuable information resulting in critical investigative leads.

“The whistleblower met with staff multiple times and provided substantial assistance to the investigation that led to the SEC’s enforcement action,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower.  “Since the beginning of October, the Commission has awarded 28 individuals over $176 million in whistleblower awards, which already surpasses the total dollar amount awarded in the entirety of any prior fiscal year.  We hope these awards continue to encourage individuals with information regarding possible securities laws violations to report to the Commission.”

The SEC has awarded more than $738 million to 134 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 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.