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Richard L. Cassin Publisher and Editor

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Thomas Fox Contributing Editor

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FCPA Blog Daily News

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Tuesday
May022017

Company insider awarded $500K for tipping SEC to ‘well-hidden’ misconduct

The Securities and Exchange Commission said Tuesday a company insider earned a whistleblower award of more than $500,000.

The information "prompted an SEC investigation into well-hidden misconduct that resulted in an SEC enforcement action," the agency said.

The award is the second announced by the SEC in the past week. Last Tuesday the SEC awarded nearly $4 million to a whistleblower who tipped the agency and helped with the follow-on investigation.

With today's action, the SEC has now awarded about $154 million to 44 whistleblowers.

Jane Norberg, chief of the SEC’s Office of the Whistleblower, said:

Company insiders are in a unique position to provide specific information that allows us to better protect investors and the marketplace.

The SEC's redacted award order is here (pdf).

By law, the agency protects the confidentiality of whistleblowers and doesn't disclose information that might directly or indirectly reveal a whistleblower’s identity. 

Whistleblowers can be eligible for an award when they voluntarily provide the SEC with "original, timely, and credible information" that leads to a successful enforcement action.

Awards can range from 10 percent to 30 percent of the money collected when recoveries are more than $1 million.

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Richard L. Cassin is the publisher and editor of the FCPA Blog.