SEC expects to pay whistleblower a record $30 million
The SEC expects to pay an award of more than $30 million to a whistleblower—a total that’s more than twice the previous record payout announced in the commission’s 2-year-old whistleblower program.
An informant living in a foreign country who provided important, original information that led to a successful SEC enforcement action will receive the award. SEC officials said in a news release that the award demonstrates the international reach of the whistleblower program.
As required by the whistleblower program mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act, P.L. 111-203, the SEC will not disclose the whistleblower’s name. The program gives the SEC the ability to pay for high-quality, original information that results in SEC enforcement actions with sanctions of more than $1 million.
Whistleblowers can receive 10% to 30% of the money collected in a case. The fund is financed through sanctions paid to the SEC by securities law violators. Read more on the Journal of Accountancy.