The Securities Exchange Commission (SEC) announced a whistleblower award on Friday to three whistleblowers who jointly submitted a tip alerting the agency to fraud harming retail investors. Their assistance led to a successful enforcement action stopping a “well-concealed fraud.” The SEC announced that the whistleblowers would share an award of over $260,000. The whistleblowers were investors that were harmed by the scheme, which resulted in the loss of their retirement savings.

“Because of the whistleblowers’ information and assistance early in the investigation, the SEC had strong evidence about a fraudulent scheme operated by recidivist violators,” Jane Norberg, Chief of the SEC’s Office of the Whistleblower, saidin Friday’s press release.

Individuals who voluntarily provide the SEC with original information on securities fraud violations that lead to successful enforcement actions resulting in monetary sanctions exceeding $1,000,000 are eligible for awards under the Securities Exchange Act. The awards range from 10 to 30 percent of the money collected.

The SEC reports it has paid approximately $387 million in awards to 70 whistleblowers since 2012. The whistleblower provisions of the Dodd-Frank Act require the SEC to protect the confidentiality of the whistleblower and ensures that it does not disclose information that could reveal a whistleblower’s identity.

More resources:

Visit the SEC Whistleblower website