U.S. whistleblower awarded US$2.5 million

The U.S. Securities and Exchange Commission (SEC) has handed out another multi-million dollar whistleblower award, this time to a government employee who tipped off regulators to possible corporate misconduct.

Specifically, the SEC announced that it has awarded almost US$2.5 million to the tipster, who provided the regulator with information that helped launch an investigation into a company’s conduct. The SEC does not provide many details of whistleblower cases to protect the anonymity of prospective tipsters.

“Whistleblowers can provide a wealth of information and ongoing assistance that helps our agency bring enforcement actions quicker and more efficiently,” says Jane Norberg, chief of the SEC’s Office of the Whistleblower, in a statement. “This whistleblower not only helped us open the case, but also provided timely ongoing assistance along with critical documents and testimony that accelerated the pace of our enforcement action.”

The SEC reports that approximately US$156 million has now been awarded to 45 whistleblowers since its program to pay financial rewards was adopted.

In Canada, the Ontario Securities Commission (OSC) is the only regulator that has launched a whistleblower program that offers financial rewards. The OSC has yet to announce its first award under the program.

Photo copyright: lightwise/123RF