US SEC issues largest ever whistleblower award of US$279 million
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THE US Securities and Exchange Commission (SEC) has issued its largest ever award of nearly US$279 million to a whistleblower whose information helped the regulator’s enforcement action, it said on Friday (May 5).
The regulator did not disclose the case concerned in its statement.
The award is more than double the US$114 million that it had issued in October 2020.
“As this award shows, there is a significant incentive for whistleblowers to come forward with accurate information about potential securities law violations,” said Gurbir Grewal, director of the SEC’s Division of Enforcement, in a statement.
Payments to whistleblowers are made out of an investor protection fund that was established by Congress and financed entirely through monetary sanctions paid to the SEC by securities law violators.
Awards to whistleblowers can range from 10 per cent to 30 per cent of the money collected when the monetary sanctions exceed US$1 million.
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“The whistleblower’s sustained assistance including multiple interviews and written submissions was critical to the success of these actions,” said Creola Kelly, chief of the SEC’s Office of the Whistleblower. REUTERS
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