The U.S. Securities and Exchange Commission (SEC) has awarded a corporate whistleblower more than US$1.7 million for providing the regulator with “critical information to help stop a fraud that would have otherwise been difficult to detect.”
The SEC protects the anonymity of whistleblowers by not announcing details of these cases. However, it does note that the enforcement action sparked by the whistleblower tip led to millions of dollars being returned to harmed investors.
“When whistleblowers tip the SEC, it not only can bring wrongdoers to justice but also relief to investors. This whistleblower’s valuable information enabled us to stop further investor harm and ultimately return money to victims,” says Jane Norberg, chief of the SEC’s Office of the Whistleblower, in a statement.
The SEC’s announcement on Thursday is the second financial award announced in less than a week by the SEC, which has now paid out approximately US$158 million to 46 whistleblowers under its program that pays for information leading to significant enforcement action.
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