The Securities and Exchange Commission announced the latest awards in its whistleblower program, which provides monetary payments to eligible individuals who come forward with information about securities fraud or other wrongdoing.
Three whistleblowers will be receiving approximately $18 million for their information and assistance that led to a successful enforcement action, the SEC said.
According to the commission, the first whistleblower provided significant information that led to the opening of an investigation into a fraudulent scheme. The person’s assistance saved the SEC considerable staff time and resources, and played an important role in the enforcement action’s overall success. The information provided by the other two whistleblowers later in the investigation also contributed to the success of the action.
“All three whistleblowers provided valuable information and assistance, which played a critical role in the SEC bringing an enforcement action and returning millions of dollars to harmed investors,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower.
Created by Congress under the Dodd-Frank Act of 2010, the whistleblower program is financed entirely through monetary sanctions paid to the SEC by securities law violators. Individuals who voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action may be eligible for a whistleblower award, which can range from 10 to 30 percent of the money collected when the sanctions exceed $1 million. The confidentiality of all whistleblowers is protected by the SEC, and no information is disclosed that could reveal their identity. No money has been taken or withheld from harmed investors to pay whistleblower awards.
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