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SEC Awards Whistleblower $14 Million

Whistleblower Today

The Securities and Exchange Commission (SEC) announced its largest whistleblower reward, $14 million, pursuant to the Dodd-Frank whistleblower program. 

Whistleblowers can receive up to 30 percent of the funds collected by the SEC in exchange for high-quality original information if the related SEC enforcement action results in sanctions greater than $1 million. 

 “Our whistleblower program already has had a big impact on our investigations by providing us with high quality, meaningful tips,” said SEC Chair Mary Jo White.  “We hope an award like this encourages more individuals with information to come forward.”

The witness, who did not wish to be identified, provided original information and assistance that allowed the SEC to investigate an enforcement matter more quickly than otherwise would have been possible.  Less than six months after receiving the whistleblower’s tip, the SEC was able to bring an enforcement action against the perpetrators and secure investor funds.

“While it is certainly gratifying to make this significant award payout, the even better news for investors is that whistleblowers are coming forward to assist us in stopping potential fraud in its tracks so that no future investors are harmed,” said Sean McKessy, chief of the SEC’s Office of the Whistleblower.  “That ultimately is what the whistleblower program is all about.”

If the whistleblower wishes to remain anonymous, the SEC must protect the confidentiality of whistleblowers and is prohibited from disclosing information that may reveal a whistleblower’s identity. 

 


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