A whistleblower whose tip helped the U.S. Securities and Exchange Commission (SEC) bring down an active fraud scheme is getting a seven-figure payday.
The SEC said that a US$3.8 million whistleblower award is being paid to a tipster who helped it disrupt an ongoing fraud by providing the regulator with “significant information.”
As a result, the SEC brought an enforcement action that returned millions of dollars to harmed investors.
The details of whistleblower cases are not reported to protect the identity of people who provide tips to the SEC.
“Today’s award underscores the paramount role the SEC’s whistleblower program plays in safeguarding the Main Street investor,” said Jane Norberg, chief of the SEC’s Office of the Whistleblower.
“Since the beginning of the program nearly 10 years ago, the SEC has ordered more than US$2.5 billion in financial remedies based on whistleblower information, including more than US$1.4 billion in disgorgement and prejudgment interest, of which almost US$750 million has been returned or is scheduled to be returned to harmed investors,” Norberg said.
With this latest award, the SEC has now paid approximately US$505 million to 87 whistleblowers, including US$119 million in the last 10 months.