SEC awards whistleblowers $875,000

By Staff | June 5, 2014 | Last updated on June 5, 2014
1 min read

The SEC has announced a whistleblower award of more than $875,000 to be split evenly between two individuals who provided tips and assistance to help the agency bring an enforcement action.

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The SEC’s whistleblower program, 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% to 30% 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.

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“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, click here.

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