America's Securities and Exchange Commission (SEC) announced on Friday a whistleblower award of almost $700,000 given to a claimant whose 'prompt reporting' led the SEC to open an investigation.
The SEC whistleblower suffered "undue hardship" as a result of their activities.
According to the SEC press release, the whistleblower initially reported their concerns internally before contacting the SEC Whistleblower Office. The "significant information" this whistleblower brought to the Commission during the investigation resulted in money being returned to harmed investors.
This whistleblower stepped forward and helped the agency to protect and compensate harmed investors.”
"The SEC continues to be a flagship institution for whistleblower awards," said whistleblower attorney Stephen M. Kohn, partner at the law firm Kohn, Kohn and Colapinto. "Under the Dodd-Frank Act, SEC and CFTC whistleblowers can file anonymous claims without risking retaliation and earn rewards along the way."
Under the SEC Whistleblower Program, securities fraud whistleblowers who report crimes that result in enforcement actions of $1m or more can become eligible for whistleblower awards ranging from 10-30% of the sanctions obtained.
"Because of the whistleblower's actions, the agency was able to identify the misconduct and conserve time and resources during the investigation," said Jane Norberg, chief of the SEC's Office of the Whistleblower. "This whistleblower stepped forward and helped the agency to protect and compensate harmed investors."
SEC whistleblowers have now been awarded almost $501m since the programme's inception in 2012.
