The Securities and Exchange Commission has announced the latest award in its whistleblower program, which provides monetary incentives for individuals to come forward and report possible violations of the federal securities laws.
The SEC said it had awarded $20 million to a whistleblower who provided new and critical information that led to the success of an enforcement action. In this particular case, the commission said the individual involved had brought forth significant information and assistance that helped the staff of the SEC’s Enforcement Division investigate complex issues more quickly and efficiently.
“Today’s whistleblower played a crucial role in the ultimate success of the enforcement proceeding,” said Creola Kelly, Chief of the SEC’s Office of the Whistleblower. “Whistleblowers can help advance existing investigations in meaningful ways when their information saves the agency time and resources, and when their contributions allow SEC staff to better understand complicated issues.”
Under the whistleblower program that was created by Congress, eligible individuals can receive an award between 10 and 30% of the monetary sanctions collected in actions brought by the SEC and other authorities when those sanctions exceed $1 million. Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action. Their confidentiality is protected by the SEC, which does not disclose any information that could reveal the person’s identity.
The payments come from an investor protection fund that is financed by sanctions paid to the SEC by those who have violated securities laws.
The attorneys at Hyman Cotter PC include former senior attorneys at the SEC whose legal experience and industry knowledge make them uniquely qualified to provide counsel on securities regulatory, compliance and enforcement matters. When it comes to regulatory compliance and enforcement matters, our attorneys have dealt with a wide range of investigations and enforcement actions. If your firm is facing an investigation from a regulatory agency, please contact Hyman Cotter PC At 312-291-4600 or through our online contact form.
