Block letters spelling fraud, with magnifying glass

The U.S. Securities and Exchange Commission (SEC) has paid out financial awards to a couple of whistleblowers who helped the regulator shut down ongoing investor frauds.

The SEC separately paid two tipsters for providing it with “significant information” that helped the regulator uncover two schemes that preyed on retail investors. One whistleblower received more than US$277,000 and the other was paid US$45,000.

In both cases, the whistleblowers “played a crucial role” in helping the SEC protect retail investors, said Jane Norberg, chief of the SEC’s Office of the Whistleblower.

“The information provided saved the SEC time and resources in conducting the investigations and assisted the SEC in returning money to harmed investors,” she added.

The details of whistleblower award cases are not generally revealed in order to protect the identities of people providing information to regulators.

Since 2012, when the commission issued its first award, the SEC has paid out approximately US$387 million to 72 whistleblowers.