Tipster helped SEC uncover misconduct, protect investors

A tipster who provided regulators with independent data analysis that revealed misconduct has received a payout from the U.S. Securities and Exchange Commission (SEC).

The SEC announced a US$1.1-million financial award to a whistleblower who analyzed publicly-available documents and uncovered “important new insights” for regulators who were already in the midst of an ongoing investigation.

“The whistleblower’s information and exemplary assistance helped the agency bring an emergency action preventing further investor harm,” the SEC said, adding that the analysis helped the commission protect investor assets from being dissipated by the violator.

“Today’s award reflects the commission’s commitment to award whistleblowers who provide high-quality independent analysis,” said Jane Norberg, chief of the SEC’s Office of the Whistleblower.

“Whistleblowers who devote time and effort to develop unique insights may afford the commission important information about possible securities laws violations,” she added.

The SEC has now awarded more than US$720 million to 113 individual whistleblowers.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.