The Securities and Exchange Commission said Monday it awarded about $6 million to joint whistleblowers who provided information that led to an investigation and provided a road map for an "enforcement action."
"Today's award illustrates that the agency can leverage whistleblower information in various ways, including by prompting an examination," Jonathan Carr, acting chief of the SEC's Office of the Whistleblower, said in a news release. "If that examination ultimately results in an enforcement action, the whistleblower may be eligible for an award."
Under guidelines of the SEC's whistleblower program, created by Congress in 2010 through the Dodd-Frank Wall Street Reform and Consumer Protection Act, the agency said it "protects the confidentiality of whistleblowers and does not disclose any information that could reveal a whistleblower's identity." Likewise, the agency didn't name the target of its investigation.
The SEC said whistleblowers are eligible for monetary awards when they voluntarily provide it "with original, timely, and credible information that leads to a successful enforcement action." Awards can range from 10% to 30% of the money collected by the SEC should monetary sanctions exceed $1 million.
The agency also said payments to whistleblowers are made out of an investor protection fund from financial sanctions "paid to the SEC by securities law violators."
Michael Katz ✉
Michael Katz is a Newsmax reporter with more than 30 years of experience reporting and editing on news, culture, and politics.
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