SEC Whistleblower Receives $7 Million Reward for Assisting in Investigation
Today, the Securities and Exchange Commission (SEC) announced a whistleblower award of $7 million given to an individual whose information and assistance was critical to an investigation.
According to the SEC order, the “Claimant provided Enforcement staff with extensive and ongoing assistance during the course of the investigation, including identifying witnesses and helping staff understand complex fact patterns and issues related to the matters under investigation.”
“The whistleblower showed great tenacity and effort in attempting to expose the misconduct that was the basis for the SEC’s action,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “The whistleblower’s information and assistance helped the SEC staff devise an investigative plan, craft document requests, and ultimately bring an important enforcement action focusing on serious financial abuses.”
The SEC Whistleblower Program requires that the Commission pay whistleblowers, including anonymous whistleblowers, whose original information results in a sanction of $1 million or more a monetary reward.
“The SEC Whistleblower reward program is a proven success,” said Kohn, Kohn & Colapinto whistleblower attorney Stephen M. Kohn. “The confidentiality requirements encourage insiders to work closely with SEC investigators to help with discovery, devise investigative plans, and ensure those who defraud investors are brought to justice.”
Ben Kostyack also contributed to this article.