Whistleblower Receives $5.5 Million Award for Providing Information to SEC
A recent corporate whistleblower who provided information to the U.S. Securities and Exchange Commission (SEC) about an ongoing fraudulent scheme targeting investors received a $5.5 million award from the agency. It marked the 38th award the agency has handed out since the program’s establishment in 2012.
According to the SEC, the whistleblower was still employed by the company that was breaking the law at the time the individual was providing information on the scheme. That information ended up being pivotal in helping end fraud that preyed on what the agency considered to be a “more vulnerable” community of investors. That whistleblower’s identity is being held confidential, as is customary under the agency’s whistleblower program.
Whistleblower awards keep on coming
Over the last two years, the frequency with which the SEC has handed out whistleblower awards has continued to increase. This was the first award provided in 2017, and a record number of awards occurred last year.
Whistleblowers are eligible for awards if they provide the SEC with unique, original information that leads to a successful enforcement action. They may receive anywhere from 10 to 30 percent of the value of that action, if it was worth more than $1 million — typically depending on the extent to which they assisted in the case.
According to the SEC, whistleblower tips have now led to more than $904 million in enforcement actions and financial remedies, with $142 million of that being distributed to the 38 whistleblowers who have helped the SEC bring large, successful enforcement actions against wrongdoers.
For more information on how to file a claim in the SEC’s Office of the Whistleblower, contact a trusted Dallas attorney at Whistleblower Law for Managers today.