SEC Awards Whistleblower $3.5m after Tip Helped Bolster Investigation

A substantial award has been given by the US Securities and Exchange Commission (SEC) to an individual that helped the agency with an ongoing investigation, by providing a tip that returned $3.5 million in compensation to the Whistleblower Whistleblower A whistleblower is an individual who manages to provide information or activity within a private or public organization that is deemed illegal, unethical, or not correct. In many countries, including the United States, whistleblowers are protected by law and in some cases can even recoup rewards if their information leads to successful prosecution.In the context of the financial services industry, whistleblowers play a large role in oversight, helping unmask several episodes of illicit behavior A whistleblower is an individual who manages to provide information or activity within a private or public organization that is deemed illegal, unethical, or not correct. In many countries, including the United States, whistleblowers are protected by law and in some cases can even recoup rewards if their information leads to successful prosecution.In the context of the financial services industry, whistleblowers play a large role in oversight, helping unmask several episodes of illicit behavior Read this Term, according to an official SEC press release.

The highly rewarded information was described as helping to provide additional evidence of wrongdoing to assist with strengthening the SEC’s existing case against the parties that are under investigation. Under law, the SEC keeps the identity of the whistleblower confidential.

While the agency said that whistleblowers should be encouraged to come forward and report any such potential violations of securities laws, the SEC welcomed input even if people believe the agency may already be aware of the details.

This latest award brings the total awarded to over $62 million across 28 whistleblowers since the program started in 2011, paid via a fund that is based on money that has been paid by securities law violations .

“Whistleblowers can receive an award not only when their tip initiates an investigation, but also when they provide new information or documentation that advances an existing inquiry,” said Andrew Ceresney, director of the SEC’s Division of Enforcement, commenting in the press release. “This particular whistleblower’s tip substantially strengthened our ongoing case and increased our Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term during settlement negotiations with the company.”

The news comes just over a month since the SEC announced its largest whistleblower award to date.