The Securities and Exchange Commission (SEC) announced giving a record $114 million award to a whistleblower who provided information and assistance that led to the successful enforcement actions.
SEC Chairman Jay Clayton commented:
Jay Clayton
Today’s milestone award is a testament to the Commission’s commitment to award whistleblowers who provide the agency with high-quality information.
Whistleblowers make important contributions to the enforcement of securities laws and we are committed to getting more money to whistleblowers as quickly and as efficiently as possible.
Jane Norberg, Chief of the SEC’s Office of the Whistleblower said:
The actions of the whistleblower awarded today were extraordinary. After repeatedly reporting concerns internally, and despite personal and professional hardships, the whistleblower alerted the SEC and the other agency of the wrongdoing and provided substantial, ongoing assistance that proved critical to the success of the actions.
So far, the agency has awarded over $676million to total of 108 individuals since the first award was issued in 2012. Payment of the awards is taken out of an investor protection fund set up by Congress. It is financed through monetary sanctions of security law violations paid to SEC.
To be eligible for award, a whistleblower needs to voluntarily provide the commission with reliable information that leads to successful enforcement action. The awards range between 10 and 30 % of the money collected by SEC when the sanction is for more than $1 million.
According to the Dodd-Frank Act, SEC must protect the identity of the whistleblower and not disclose any information that could reveal it.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
