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FCPA Blog Daily News

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Friday
Apr132018

SEC awards whistleblower $2.1 million

The SEC Thursday awarded more than $2.1 million to a former company insider "whose information led to multiple successful enforcement actions." 

The whistleblower's information "strongly supported the findings in the underlying actions," the SEC said.

The whistleblower also provided ongoing assistance to the SEC during the investigation, according to the redacted award order (pdf).

By law, the SEC is required to protect the confidentiality of whistleblowers and doesn't disclose information that might reveal their identity.

With Thursday's award, the SEC has now paid more than $266 million to 55 whistleblowers since its first award in 2012.

Awards are paid out of penalties the SEC collects from securities law violators.

In mid March this year, the SEC awarded three whistleblowers $83 million. Last week there was an award of $2.2 million.

Jane Norberg, chief of the SEC’s Office of the Whistleblower, said Thursday: “The SEC has issued nearly $90 million in whistleblower awards in the past month alone."

"As these awards demonstrate, we continue to receive high-quality information from whistleblowers, which we use to detect and prosecute securities violations and safeguard investors,” Norberg said.

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 sanctions are more than $1 million.

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