The United States Securities and Exchange Commission (SEC) announced an award of over $17 million to another whistleblower on Tuesday.
The financial markets regulator said the whistleblower provided information and assistance during a covert investigation.
The new award comes a few days after the SEC awarded two whistleblowers with more than $3 million each.
The whistleblowers similarly alerted the regulator to misconduct and provided cooperation during its investigation.
In the new case, the SEC said the whistleblower prompted its staff to initiate an investigation that was successful.
However, in accordance with the Dodd-Frank Act, the market supervisor did not disclose the identity of the whistleblower.
The regulator explained: “The whistleblower also provided SEC Enforcement staff with detailed information and documents throughout the investigation.
“Further, because the same information led to the success of the related action, the whistleblower is also entitled to an award based on amounts collected in the related action.”
$1.3 Billion in Awards
The SEC said it has awarded approximately $1.3 billion to 278 people since issuing the first award in 2012.
In addition, the regulator noted that whistleblowers are not paid from investors’ funds recovered through whistleblowing.
Instead, they are paid from an investor protection fund established by the United States Congress, the SEC said.
This protection fund is financed completely through monetary sanctions to the SEC by violators of the US securities regulations.
The SEC explained: “Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely and credible information that leads to successful enforcement action.
“Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million.”
Creola Kelly, the Chief of the SEC’s Office of the Whistleblower, noted the new award “underscores the SEC’s commitment to rewarding meritorious whistleblowers who provide valuable information and exemplary cooperation that advance the agency’s enforcement efforts.”
