The U.S. Securities and Exchange Commission (SEC) is paying a whistleblower award to a tipster who first tried reporting suspected misconduct internally.
The SEC awarded almost US$700,000 to a whistleblower who provided the agency with “significant information” that helped it bring an enforcement action that saw money returned to harmed investors.
The details of whistleblower cases are not disclosed in order to protect the identity of tipsters.
“Because of the whistleblower’s actions, the agency was able to identify the misconduct and conserve time and resources during the investigation,” said Jane Norberg, chief of the SEC’s Office of the Whistleblower.
“This whistleblower stepped forward and helped the agency to protect and compensate harmed investors,” she said.
The SEC has now paid almost US$501 million to 84 whistleblowers under its program that offers financial rewards for tips that lead to successful enforcement action that generates at least US$1 million in sanctions.