The U.S. Securities and Exchange Commission (SEC) recently announced that it paid a whistleblower an award of more than $3 million for providing information that enabled the agency to crack a complex fraud case. This award was the third-highest amount handed out so far since the SEC established the whistleblower program several years ago.
The federal agency did not provide many details about the case other than to say the information provided by the whistleblower was very specific and provided a comprehensive overview of the fraudulent scheme that would have otherwise likely gone undetected. The initial tip provided by the whistleblower also led to some additional, related actions that increased the amount of money the whistleblower was able to receive.
Andrew Ceresney, the director of the SEC’s Division of Enforcement, said cases like this are prime examples of how much whistleblowers can impact big-time issues. The agency needs the help of whistleblowers to uncover instances of fraud and to protect consumers across the nation.
The SEC receives several thousand whistleblower tips every year, and when those tips have merit, the financial rewards for the whistleblowers could be significant. In fact, awards range anywhere from 10 to 30 percent of the total amount of money collected in a case. So far, there have been 17 whistleblower awards handed out by the SEC since it began the program more than three years ago, with payouts totaling in excess of $50 million.
To learn more about the potential rewards for filing a whistleblower tip with the SEC, contact skilled Dallas attorney Steve Kardell at Whistleblower Law for Managers today.