Anonymous SEC Whistleblower Earns $2.4 Million Award For Prompting Commission to Open Investigation
Today, the Securities and Exchange Commission (SEC) issued a whistleblower award of $2.4 million to an individual whose reporting led to an investigation that stopped ongoing fraud and misconduct.
Just days before the SEC will vote on controversial proposed rules to their highly successful whistleblower program, they announced yet another substantial whistleblower award. Since 2012, the program has issued over $520 million to 97 whistleblowers.
“This week’s SEC vote on the whistleblower rules will determine the future of the program, which has now awarded over a half of a billion dollars to date,” said whistleblower attorney Stephen M. Kohn, partner at Kohn, Kohn & Colapinto. “We hope the SEC makes the right decision so whistleblowers like this continue to see large paydays.”
According to a press release, the SEC whistleblower provided timely information that prompted the Commission to open an investigation.
“The whistleblower awarded today quickly came forward with critical information and helped investigative staff target key information and identify important witnesses,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “Information from whistleblowers has again proven to be crucial in helping the Commission detect violations and better protect investors and the marketplace.”
The SEC Whistleblower Program protects the identity of whistleblowers who submit reward claims with the Commission. As set forth under the Dodd-Frank Act, SEC whistleblowers who provide the Commission with information that leads to successful enforcement actions leading to $1 million or more in sanctions are entitled to 10-30% of the monies collected.
Read Stephen M. Kohn’s column from The Hill: Will the SEC undermine America’s most successful corporate whistleblower law?
For more information on the upcoming SEC vote, click here.
Ben Kostyack also contributed to this article.