Whistle-Blower Gets $3.8 Million From SEC for Aiding Fraud Case
(Bloomberg) -- The U.S. Securities and Exchange Commission awarded $3.8 million to a whistle-blower credited with providing “significant information” to help the agency disrupt a fraudulent scheme and return millions of dollars to harmed investors.
The SEC, which announced the award in a Tuesday statement, didn’t provide information on the person’s identity or the company involved, citing federal law that protects confidentiality. The agency has paid out roughly $505 million to 87 individuals since issuing its first award in 2012.
Whistle-blowers are eligible for payouts if they voluntarily give the SEC unique information that leads to a successful enforcement action. Compensation can range from 10% to 30% of the money collected in cases where sanctions exceed $1 million.
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