SEC Issues $279 million whistleblower award, its largest ever
The US Securities and Exchange Commission has issued its largest ever award of nearly $279 million to a whistleblower whose information led to the successful enforcement of SEC and related actions, the US market regulator said.
The market regulator did not identify the whistleblower in its statement, in keeping with its policy of not divulging this information to the public.
The award is more than double the $114 million that the regulator issued in October 2020.
Under SEC rules, the whistleblower awards can range from 10 to 30% of the money collected when the monetary sanctions exceed $1 million.
“As this award shows, there is a significant incentive for whistleblowers to come forward with accurate information about potential securities law violations,” Gurbir Grewal, director of the SEC’s Division of Enforcement, said 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.
“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.
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Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.