SEC Awards Over $9 Million to Whistleblower Who Prompted Successful Enforcement Action

The SEC has announced an award of more than $9 million to a whistleblower for providing detailed information and assistance that helped the agency in a successful enforcement action. The whistleblower had reported the concerns internally before alerting the Enforcement Division, and provided substantial and ongoing cooperation throughout the investigation. The payout comes from a fund Congress created to be paid out of money collected from securities law violators; no money has been taken from affected investors. Whistleblowers are eligible for this type of award when they provide original, timely, and credible information that leads to a successful enforcement action, and the award amount can range from ten to thirty percent of the money recovered. In accordance with the Dodd-Frank Act, the SEC keeps the identity of the whistleblower confidential and releases no information that could expose them.