SEC whistleblower nets $50 million payout, most ever
Award is largest SEC payout to an individual whistleblower since 2018
The Securities and Exchange Commission has awarded a record $50 million payout through its Whistleblower Program to an individual who provided "detailed, firsthand observations of misconduct by a company" that led to enforcement action returning "a significant amount of money to harmed investors."
“This award marks several milestones for the whistleblower program,” said Jane Norberg, chief of the SEC’s Office of the Whistleblower, in an agency release Thursday. "Whistleblowers have proven to be a critical tool in the enforcement arsenal to combat fraud and protect investors.”
SEC WHISTLEBLOWER PROGRAM: 5 FACTS
The award is the largest amount given to a single individual under the SEC whistleblower program since a $39 million payout in 2018. A separate $50 million award that same year was split between two whistleblowers.
CORONAVIRUS MISCONDUCT CRACKDOWN BY SEC FUELED BY WHISTLEBLOWER TIPS
Since issuing its first whistleblower award in 2012, the SEC has awarded over $500 million to 83 individuals. Over $100 million has been distributed in the current fiscal year alone. The SEC started the program in 2011, according to its website.
Individuals are eligible for an SEC whistleblower award by providing "original, timely, and credible information that leads to a successful enforcement action."
All SEC payments are made through an investor protection fund established by Congress that is financed through monetary sanctions by securities law violators. The awards can range from 10 to 30 percent of the money collected from sanctions exceeding $1 million.
No money intended to compensate investors is used in the award, according to the SEC.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
As part of the Dodd-Frank Act, the SEC does not disclose any information that could reveal a whistleblower's identity.