The U.S. Securities and Exchange Commission (SEC) announced a whistleblower award of over $18 million. The whistleblower’s information led the SEC to a significant enforcement action that returned millions of dollars in losses to retail investors. The whistleblower, a company insider, reported concerns several times internally, according to the SEC order.
“Because of this whistleblower’s actions, harmed investors were able to recover millions of dollars in losses,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “This whistleblower stepped forward and helped the agency better protect Main Street investors.”
Since 2012, the SEC Whistleblower Program has awarded over $448 million to 81 individuals. Securities and commodities fraud is regulated by the Dodd-Frank Act, which requires payment to whistleblowers of between 10 percent and 30 percent of monetary sanctions collected if the penalties exceed $1 million. Dodd-Frank is one of several federal, state, and local laws that encourage whistleblowing by offering protections and rewards.