The United States Agency Securities and Exchange Commission announced an award of more than $10 million which is more than 73,00,00,000/- Rupees to a whistleblower for providing crucial information and assistance to the commission for a successful SEC enforcement action.
Chief of the SEC’s Office Jane Norberg said, “This award recognizes the persistent efforts of the whistleblower to expose serious financial misconduct,”
Jane Norberg added “This whistleblower also provided extensive and ongoing assistance to the investigative team over the course of the investigation; including identifying witnesses and helping staff understand complex fact patterns and issues related to the matters under investigation.”
The SEC has a history to award whistleblowers. Securities and Exchange Commission awarded approximately $520 million to 94 individuals since issuing its first award in 2012.
Securities and Exchange Commission issued a statement that 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 whistleblower awards.
Whistleblowers 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.
Whistleblower awards can range from 10-30% of the money collected when the monetary sanctions exceed $1 million.
The Securities and Exchange Commission protects the confidentiality of whistleblowers and does not disclose information that could reveal a whistleblower’s identity.