Tags: Whistleblower | sec | federal

Federal Whistleblower Gets Record $144M for Helping SEC

Federal Whistleblower Gets Record $144M for Helping SEC
(Dreamstime.com)

By    |   Friday, 23 October 2020 07:32 PM

The Securities and Exchange Commission will pay a record-breaking $114 million award to a whistleblower who assisted an investigation, according to the Washington Examiner.

"The Securities and Exchange Commission today announced an award of over $114 million to a whistleblower whose information and assistance led to the successful enforcement of SEC and related actions," the SEC wrote in a statement.

"The $114 million award consists of an approximately $52 million award in connection with the SEC case and an approximately $62 million award arising out of the related actions by another agency."

The award eclipses the prior award of $50 million, which was handed out in June. Two individuals also shared a nearly $50 million award in 2018.

''Today’s milestone award is a testament to the Commission’s commitment to award whistleblowers who provide the agency with high-quality information,'' SEC Chairman Jay Clayton said. ''Whistleblowers make important contributions to the enforcement of securities laws and we are committed to getting more money to whistleblowers as quickly and as efficiently as possible.''

The SEC wouldn't tell which investigation led to the payout or who assisted them with the information. 

"I hope this record-breaking award encourages others with information about possible securities laws violations to step forward," Jane Norberg, head of the SEC's whistleblower office, told CNN Business.

"One big lesson from this award is that companies should take reports from whistleblowers seriously," Norberg said. "Because it is likely that the SEC already has the information, or will shortly thereafter. And we will follow up on it."

The 2010 Dodd-Frank Wall Street reform law empowered the SEC to offer financial rewards to whistleblowers who give the agency “original, timely, and credible information” that leads to a successful enforcement action, The Hill.com reported.

The SEC has paid out roughly $676 million to 108 whistleblowers since 2012, the agency said, all from a fund financed by penalties paid for securities law violations.

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The Securities and Exchange Commission will pay a record-breaking $114 million award to a whistleblower who assisted an investigation, according to the Washington Examiner.
Whistleblower, sec, federal
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2020-32-23
Friday, 23 October 2020 07:32 PM
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