Washington, DC (STL.News) The Securities and Exchange Commission Friday announced an award of approximately $2 million to a whistle-blower who provided vital information and assistance that substantially contributed to an ongoing investigation. The whistle-blower’s information would have been difficult for the agency to obtain absent the tip.
“The whistle-blower’s actions in this matter were extraordinary,” said Jane Norberg, Chief of the SEC’s Office of the Whistle-blower. “The whistle-blower expeditiously reported the information to the Commission and provided valuable assistance despite implied threats from the wrongdoers.”
The SEC has awarded over $398 million to 78 individuals since issuing its first award in 2012. All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistle-blower awards. Whistle-blowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action. Whistle-blower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million.
As set forth in the Dodd-Frank Act, the SEC protects the confidentiality of whistle-blowers and does not disclose information that could reveal a whistle-blower’s identity.
For more information about the whistle-blower program and how to report a tip, visit www.sec.gov/whistleblower.
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