Today the Securities and Exchange Commission ("SEC") announced an award of more than $1 million to a whistleblower whose information and assistance led to an SEC enforcement action. This has become a regular occurrence - since issuing its first award in 2012, the SEC has awarded nearly $1 billion in awards to nearly 200 individuals.
Whistleblowers may be eligible for an award when they "voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action. Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million."
An important feature of the SEC Whistleblower Program is that it allows the individual providing the information to remain anonymous. However, when submitting information anonymously you must be represented by an attorney.
The SEC has awarded approximately $939 million to 182 individuals since issuing its first award in 2012. All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators.
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