A whistleblower who tipped off U.S. authorities to an apparent fraud scheme is receiving a financial award from the U.S. Securities and Exchange Commission (SEC).
The SEC will pay approximately US$125,000 to a tipster who provided the SEC and another unnamed agency with information that led to enforcement actions against the perpetrator of a fraudulent securities offering.
“The whistleblower’s tip helped stop a fraudulent scheme that preyed on a vulnerable investor community,” said Jane Norberg, chief of the SEC’s Office of the Whistleblower.
The specific details of whistleblower cases are not revealed in order to protect the identity of tipsters.
The SEC has now awarded approximately US$501 million to 85 whistleblowers since paying out its first award in 2012.
“Whistleblowers like the individual receiving the award today provide a valuable public service, and we encourage others to come forward with information regarding possible securities laws violations,” Norberg said.