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A prospective investor who was a suspicious of an investment that was pitched to them is getting a US$3 million whistleblower award after tipping off regulators.

The U.S. Securities and Exchange Commission (SEC) issued a pair of awards, which totalled more than US$6 million, to two different whistleblowers who alerted the regulator to suspected misconduct.

In one case, the SEC found that an investor alerted the regulator after they were, “solicited to invest in a product that they believed was being misrepresented.”

That tip led to an investigation, and the tipster subsequently cooperated with the regulator, which has now resulted in a US$3 million award.

The other case involved an insider who first raised concerns internally, and later filed a whistleblower tip with the SEC. They have also been awarded over US$3 million.

“When confronted with potential wrongdoing, today’s whistleblowers refused to look the other way, but instead, chose to do the right thing by reporting it to the SEC,” said Creola Kelly, chief of the SEC’s Office of the Whistleblower, in a statement.

“Insiders and outsiders alike can make a tremendous impact on the SEC’s ability to detect misconduct and protect investors when they decide to become whistleblowers,” she added.

The SEC has now awarded approximately US$1.3 billion to 276 whistleblowers since issuing its first award in 2012.