The Securities and Exchange Commission Tuesday announced a whistleblower award of more than $875,000 to be split evenly between two individuals who provided tips and assistance to help the agency bring an enforcement action.
The SEC’s whistleblower program authorized by the Dodd-Frank Act rewards high-quality, original information that results in an SEC enforcement action with sanctions exceeding $1 million. The awards can range from 10% to 30% of the money collected in a case.
However, the SEC is required by law to protect the confidentiality of whistleblowers and cannot disclose any information that might directly or indirectly reveal a whistleblower’s identity.
“These whistleblowers provided original information and assistance that enabled us to investigate and bring a successful enforcement action in a complex area of the securities market,” said Sean McKessy, chief of the SEC’s Office of the Whistleblower, in a statement. “Whistleblowers who report their concerns to the SEC perform a great service to investors and help us combat fraud.”
Eight whistleblowers have been awarded through the SEC’s program since it began in late 2011.