The U.S. Securities and Exchange Commission (SEC) has given its largest ever award of almost $279 million to a whistleblower whose information was crucial in an enforcement action by the regulator. The SEC did not reveal the case involved, but the award shows there is a significant incentive for whistleblowers to come forward with accurate information about potential securities law violations. Reuters reports: The award is more than double the $114 million that it had issued in October 2020. “As this award shows, there is a significant incentive for whistleblowers to come forward with accurate information about potential securities law violations,” said Gurbir Grewal, director of the SEC’s Division of Enforcement, in a statement. “The whistleblower’s sustained assistance including multiple interviews and written submissions was critical to the success of these actions,” said Creola Kelly, chief of the SEC’s Office of the Whistleblower.
Payments to whistleblowers are made out of an investor protection fund that was established by Congress and financed entirely through monetary sanctions paid to the SEC by securities law violators. Awards to whistleblowers can range from 10% to 30% of the money collected when the monetary sanctions exceed $1 million.
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