U.S. SEC Awards $37 Million to A Whistleblower for Helping Enforcement Action

The U.S. Securities and Exchange Commission (SEC) has awarded a whistleblower over $37 million for helping with an enforcement action.

The whistleblower is said to have provided the regulator with information during an SEC enforcement action, helping staff identify potential witnesses and document and saving time and resources for the action.

Awards to whistleblowers are derived from monetary sanctions imposed on securities law violators. When a whistleblower voluntarily provides the SEC with original, timely, and credible information that helps the regulator conduct a successful enforcement action, he or she may be eligible to receive an award ranging from 10% to 30% of the amount of the monetary sanction imposed on violators.

Under the Dodd-Frank Act, the regulator protects the identity of whistleblowers and does not disclose any identifying information, the SEC said.

Creola Kelly, Chief of the SEC’s Office of the Whistleblower., said, "Today's award illustrates the importance of the SEC’s whistleblower program, as the whistleblower’s information helped the agency return millions of dollars to harmed investors."