Whistleblower Receives Record $50 Million Award From SEC
The Securities and Exchange Commission recently awarded almost $50 million to a whistleblower who provided a detailed account of a company’s misconduct. This reported misconduct led the SEC to bring an enforcement action, and the The SEC ultimately was able to return substantial amounts to harmed investors
According to Jane Norberg, chief of the SEC’s Office of the Whistleblower, this award marks several milestones for the whistleblower program.
“This award is the largest individual whistleblower award announced by the SEC since the inception of the program, and brings the total awarded to whistleblowers by the SEC to over $500 million, including over $100 million in this fiscal year alone,” she said in a statement. “Whistleblowers have proven to be a critical tool in the enforcement arsenal to combat fraud and protect investors.”
Whistleblowers may receive an award — which ranges from 10 percent to 30 percent of collected sanctions — when they provide the SEC with original, timely, and credible information that results in a successful enforcement action. The SEC makes all whistleblower payments from an investor protection fund that is financed through sanctions paid by securities law violators. Whistleblowers’ identities are required to be protected by the Dodd-Frank Act.
If you have information of securities fraud that you believe the SEC may be interested in prosecuting, contact one of our Business Trial Group attorneys at 888-744-0142. Our attorneys regularly help people navigate through the whistleblower process.
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