The Securities and Exchange Commission (SEC) has announced a whistleblower award of more than $875,000 to be divided evenly between two individuals who provided tips and assistance to help the agency bring an enforcement action. The SEC’s whistleblower program, which is authorized by the Dodd-Frank Act, rewards high-quality, original information that results in an SEC enforcement action with sanctions exceeding $1 million. Whistleblower awards can range from 10 percent to 30 percent of the money collected in a case.
By law, the SEC must protect the confidentiality of whistleblowers and cannot disclose any information that might directly or indirectly reveal a whistleblower’s identity. “These whistleblowers provided original information and assistance that enabled us to investigate and bring a successful enforcement action in a complex area of the securities market,” said Sean McKessy, chief of the SEC’s Office of the Whistleblower. “Whistleblowers who report their concerns to the SEC perform a great service to investors and help us combat fraud.” A total of eight whistleblowers have been awarded through the SEC’s whistleblower program since it began in late 2011. For more information about the whistleblower program and how to report a tip, visit www.sec.gov/whistleblower.
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