The Securities and Exchange Commission (SEC) recently announced that it has granted its 100th Whistleblower award, with the most recent tipster, a company outsider, receiving an award of more than $1.8 million.
According to the US regulator’s statement on Monday, the whistleblower reported significant information about ongoing securities law violations, which resulted in successful enforcement action.
Commenting on the landmark, SEC Chairman Jay Clayton said in the statement: “Today’s award marks a milestone for the whistleblower program. This whistleblower is the 100th individual to receive an award under the program since its inception, and the 33rd individual awarded so far this year.
“The pace and the amounts of the awards in recent years underscore the Commission’s commitment to increasing the efficiency and effectiveness of the whistleblower program. We remain dedicated to working quickly to get more money into the hands of whistleblowers, including through the improvements that will be implemented as a result of the amendments approved by the Commission last week.”
SEC Grants $527 Million in Whistleblower Awards
Since issuing its first award in 2012, the US watchdog has given $527 million in awards to whistleblowers. The awards are made from an investor protection fund which was established by Congress and is financed entirely through monetary sanctions paid to the SEC by securities law violators.
In its statement on Monday, the SEC highlights that the money granted to whistleblowers has not been taken or withheld from harmed investors to pay the whistleblower awards. The value of the awards can range from 10 per cent to 30 per cent of the money collected when the monetary sanctions exceed $1 million.
“Today’s award demonstrates the success of the program and the important role that company outsiders can play in halting ongoing violations,” added Jane Norberg, Chief of the SEC’s Office of the Whistleblower in the statement.
“While many of our whistleblowers have been insiders, the agency also receives critical intelligence from company outsiders, like today’s whistleblower, whose swift reporting alerted staff to the violations that resulted in the success of this enforcement action.”
