SEC Awards Whistleblower $500,000 After Tip About Misconduct
In May, the U.S. Securities and Exchange Commission (SEC) awarded a whistleblower more than $500,000. The company insider had provided valuable information to the agency that “prompted an SEC investigation into well-hidden misconduct” and led to a successful agency enforcement action.
The award marked the second in a week by the SEC after more than three months without a single award issued. Earlier in the week, it awarded $4 million to a whistleblower who provided a high-quality tip to the agency and then provided valuable industry insight and experience during a follow-up investigation.
According to Jane Norberg, chief of the SEC’s Office of the Whistleblower, company insiders have a unique ability to provide the agency with specific, meaningful information that enables the agency to better protect the marketplace and investors. In many cases, the SEC would never find out about these incidents of wrongdoing without the bravery and assistance of these whistleblowers.
The 44th whistleblower award issued
This award marked the 44th whistleblower award the SEC has issued. In all, these awards total more than $154 million.
The SEC did not release any information on the whistleblower’s identity, as federal law protects whistleblower confidentiality and prevents the agency from releasing any information that could either directly or indirectly reveal the person’s identity.
Whistleblowers are eligible for SEC awards when they provide the agency with original, credible and timely information that leads to a successful enforcement action worth $1 million or more. Awards range from 10 to 30 percent of the money collected in a successful enforcement action.
For further guidance and advice on filing a whistleblower tip with the SEC, reach out to an experienced Dallas attorney at Whistleblower Law for Managers.