Whistle-Blower Awarded $7 Million by SEC for Enforcement Tip
(Bloomberg) -- The U.S. Securities and Exchange Commission awarded $7 million to a whistle-blower for information that helped the regulator bring an enforcement action, including identifying witnesses crucial to the case.
The whistle-blower provided valuable information that helped the agency uncover securities violations, according to a statement Friday from the SEC. The regulator didn’t provide any information on the person’s identity or the company involved in the enforcement action, citing federal law that protects confidentiality. The SEC has paid out more than $394 million to 73 individuals since issuing its first award in 2012.
The investigation involved “serious financial abuses,” Jane Norberg, who leads the SEC’s whistle-blower office, said in the statement.
Whistle-blowers are eligible for payouts if they voluntarily provide the SEC with unique information that leads to a successful enforcement action. Compensation can range from 10% to 30% of the money collected in a case where sanctions exceed $1 million.
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