The United States Securities and Exchange Commission announced an award of $125,000 in June to a whistleblower who went through the SEC’s whistleblower program to report wrongdoing. According to SEC representatives, the whistleblower’s information and assistance helped the SEC and another agency it was working with on the case bring a successful enforcement action against the perpetrator of a fraudulent securities scheme.
This was just the latest in a long history of whistleblower awards stretching back over nearly a decade since the implementation of the Dodd Frank Act.
As of the time of this award, the SEC had provided approximately $50.1 million to 85 different whistleblowers since it issued its first award in 2012. All of these whistleblower payments come from an investor protection fund created by Congress and financed through the monetary sanctions paid to the agency by violators of securities laws.
Whistleblowers can be eligible for 10 to 30 percent of the money collected when sanctions exceed $1 million. To be eligible, whistleblowers must provide unique, credible and timely information that leads to such a successful enforcement action.
It is SEC policy not to disclose any information that could reveal the whistleblower’s identity, which includes specifics about the case beyond the fact that there was a successful enforcement action and an instance of fraud.
For more information about how you can submit a claim through the SEC’s whistleblower program, contact an experienced Dallas whistleblower lawyer at Kardell Law Group.