The U.S. Securities and Exchange Commission (SEC) is paying a whistleblower award for a tip that prompted a compliance exam, which ultimately resulted in successful enforcement action.
The SEC announced its first whistleblower award since the change in leadership at the agency — with joint tipsters receiving approximately US$6 million for providing the regulator with information that initially led to a compliance review and eventually successful enforcement.
“Today’s award illustrates that the agency can leverage whistleblower information in various ways, including by prompting an examination,” said Jonathan Carr, acting chief of the SEC’s Office of the Whistleblower, in a release.
“If that examination ultimately results in an enforcement action, the whistleblower may be eligible for an award,” he added.
The regulator said the whistleblowers also provided the SEC with “supplemental” information that aided the compliance exam and informed the ultimate findings of that review.
“Enforcement staff found the referral from exams to be helpful as a roadmap to the investigation that resulted in [a successful enforcement action],” the agency’s order noted.