SEC, $5 million to whistleblower to help in a case

SEC 5 million to whistleblower to help in a case

(Finance) – The Securities and Exchange Commission (SEC), the US body that supervises the stock exchange, has awarded more than $5 million to a whistleblower whose information led to law enforcement action. The whistleblower provided information that helped SEC personnel shape their investigative strategy, identify witnesses, and draft documents and information requests.

“The whistleblower in this case provided helpful information and substantial ongoing assistance, saving the SEC time and resources during his investigation,” said Creola Kelly, head of the SEC’s bureau of whistleblowers.

Payments to whistleblowers are made from a fund of investor protection, instituted by Congress, which is funded entirely through fines paid to the SEC by securities law violators. No money was taken or withheld from the injured investors to pay the whistleblower premiums.

Whistleblowers – explains the SEC – may be eligible for a reward when they voluntarily provide to the SEC original, timely and credible information leading to a successful execution action. Whistleblower rewards can range from 10 to 30 percent of the money raised when fines exceed $1 million.