The Securities and Exchange Commission said Thursday that it has awarded more than $17 million to a former company employee whose detailed tip substantially advanced the agency’s investigation and ultimate enforcement action.
The award is the second-largest issued by the SEC since its whistleblower program began nearly five years ago. The SEC issued a $30 million award in September 2014 and a $14 million award in October 2013.
The $17 million was awarded to a Labaton Sucharow whistleblower client who the law firms says “provided high-quality information that led to sanctions against a major player in the financial markets.”
In this case, as in others, the whistleblower elected to remain anonymous to avoid retaliation and blacklisting, the law firm states.
“My client blew the whistle when others in the financial services industry were content to remain silent and allow investors to be harmed, ” Jordan A. Thomas, SEC whistleblower attorney and chair of Labaton Sucharow’s Whistleblower Representation Practice, said in a statement. “In the coming years, I predict that many of the SEC’s largest and most significant cases will be the result of courageous whistleblowers. This is just the beginning.”