The U.S. Securities and Exchange Commission (SEC) will hand out a total of $450,000 split between two individuals who tipped off the agency to an incident of corporate wrongdoing and provided valuable assistance in the ensuing investigation.
This was the third whistleblower award the SEC handed out within a single week span, with the total week’s payouts exceeding $10 million.No details were provided on the whistleblowers or the specific case of wrongdoing in accordance with federal law, but the case is now closed.
Highlights success of whistleblower program
Chief of the SEC Office of the Whistleblower Sean X. McKessy says the recent surge of whistleblower awards highlights how effective the program has become and the quality of tips it is receiving.
Since the whistleblower program was implemented in 2011, it has provided more than $68 million to 31 different whistleblowers. The SEC receives thousands of claims every year and conducts investigations into incidents that appear to be particularly significant. Whistleblowers are eligible to receive awards when they voluntarily provide the agency with unique information that leads to a successful enforcement action. These awards may be anywhere from 10 to 30 percent of the total money collected if the sanctions are greater than $1 million.
More whistleblowers are coming forward than ever before because of the greater protections put into place by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. For further information on how your business can remain compliant, speak with an experienced Dallas attorney at Whistleblower Law for Managers.