U.S. securities regulators have announced their largest whistleblower award, with more than US$14 million going to a whistleblower whose tips helped it recover millions in investor funds.

The U.S. Securities and Exchange Commission (SEC) said Tuesday that a whistleblower whose information led to an enforcement action that recovered substantial investor funds will receive an award of more than US$14 million — which is by far its largest whistleblower award to date.

“The whistleblower, who does not wish to be identified, provided original information and assistance that allowed the SEC to investigate an enforcement matter more quickly than otherwise would have been possible,” it says, noting that it can provide any information that would identify the whistleblower. “Less than six months after receiving the whistleblower’s tip, the SEC was able to bring an enforcement action against the perpetrators and secure investor funds.”

“Our whistleblower program already has had a big impact on our investigations by providing us with high quality, meaningful tips,” said SEC chair, Mary Jo White. “We hope an award like this encourages more individuals with information to come forward.”

The SEC’s payments to whistleblowers are made from a separate fund, which do not come from its annual appropriations, or reduce the amounts paid to harmed investors. Its whistleblower program is designed to reward “high-quality original information” that results in an SEC enforcement action with sanctions exceeding US$1 million. Its awards can range from 10% to 30% of the money collected in a case. Its first payment to a whistleblower was made in August 2012 and totalled approximately US$50,000.

“While it is certainly gratifying to make this significant award payout, the even better news for investors is that whistleblowers are coming forward to assist us in stopping potential fraud in its tracks so that no future investors are harmed,” said Sean McKessy, chief of the SEC’s Office of the Whistleblower. “That ultimately is what the whistleblower program is all about.”