The Securities and Exchange Commission (SEC) revealed it has awarded a whistleblower with over $20 million.
The whistleblower provided the regulator with information and assistance which helped significantly SEC’s enforcement action.
Additionally, SEC noted that the individual gave the agency new information, met with its staff on multiple occasions, and was helpful throughout the investigation.
Creola Kelly, Acting Chief of the SEC’s Office of the Whistleblower said:
Whistleblowers may lead to the success of an enforcement matter by providing information that causes an investigation or examination to open or that meaningfully advances an existing investigation.
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 the 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.
Earlier in November, the regulator issued awarded a whistleblower with more than $20 million.
