Whistleblower Rewarded for Protecting Consumers

On October 12, the Securities and Exchange Commission (SEC) announced an award to a corporate whistleblower of more than $1 million. The whistleblower provided “new information and substantial corroborating documentation” of securities fraud that impacted retail customers. 

The award “reflects the impact that whistleblower information can have in uncovering violations that harm the retail investor,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “We welcome high-quality information about potential securities-law violations from those in and outside a company.”

The SEC is authorized by Congress to provide whistleblower awards, which range from 10 percent to 30 percent of the money collected, when the monetary sanctions exceed $1 million. Under the Dodd Frank Act, the SEC must protect the confidentiality and anonymity of whistleblowers and therefore does not disclose information that might directly or indirectly reveal a whistleblower’s identity. 

The SEC has awarded more than $162 million to whistleblowers since the inception of the agency’s whistleblower program in 2011. The whistleblower program was established by Congress to incentivize whistleblowers with specific, timely and credible information about securities fraud to report to the SEC.

Links:

SEC Order

Key Resources for Corporate WhistleblowersSEC Notices of Covered Actions