The U.S. Securities and Exchange Commission (SEC) has provided an award of $4 million to a whistleblower who provided the federal agency with information related to a major instance of fraud.
The SEC does not disclose much information related to its whistleblower awards, and it is careful to hold back any information that could reveal the identity of the recipient.
Adding in this recent award, the SEC has now provided more than $110 million to 34 different whistleblowers over the past five years. The largest is still the $30 million award the agency gave out in 2014, and there was also a $22 million award earlier this year.
According to the SEC, tips from whistleblowers have allowed the agency to collect more than $500 million in sanctions, with more than half of that money going to harmed investors. Last year, the SEC reported receiving more than 4,000 tips, adding up to about 14,000 since the program was launched in 2011.
To date, whistleblower tips have come from every state in the country, along with the District of Columbia and 95 countries worldwide. These individuals may receive between 10 and 30 percent of the money the SEC recovers in enforcement actions, providing a big incentive for those who are aware of wrongdoing to come forward.
It is now easier and safer than ever to serve as a whistleblower, but there are still numerous legal issues to consider first. To learn more about the protections offered and how you can move forward effectively, speak with an experienced Dallas lawyer at Whistleblower Law for Managers.