This post was written by James L. Sanders.
An unnamed individual who provided information to the SEC about a securities fraud has been awarded $50,000 under the SEC’s Whistleblower Program. The award represents 30 percent of the monetary sanctions collected by the SEC in the case in which the whistleblower provided information. The whistleblower has also been awarded 30 percent of any additional monetary sanctions that the SEC collects in that matter.
This is the first monetary award by the SEC to a whistleblower under the Whistleblower Program that was established in August 2011 in order to provide financial incentives to individuals who supply information to the SEC. According to the head of the SEC’s Whistleblower Office, the award shows that the SEC’s program is “open for business and ready to pay people who bring us good, timely information.” The SEC program currently receives approximately eight tips per day. In order to be eligible for an award, a whistleblower must provide timely information that aids the SEC in bringing an enforcement action.