SEC Awards More Than $3 Million to Whistleblower

21st July 2015

The Securities and Exchange Commission (SEC) recently announced that a whistleblower was awarded more than $3 million for providing assistance and helped the SEC crack a complex fraud. 

“The award made today is another testament to the agency’s commitment to reward those who provide high-quality information that leads to successful enforcement actions and related actions,” said Sean X. McKessy, Chief of the Office of the Whistleblower. 

Whistleblowers may receive awards that can range from 10 percent to 30 percent of the amount collected by the government when financial sanctions exceed $1 million.

The award today is the third highest award to date under the SEC’s Dodd-Frank whistleblower program.

The SEC’s whistleblower program was started in 2011 and has paid more than $50 million to 18 whistleblowers, including an award of over $30 million award in 2014 and an award of over $14 million award in 2013.  An investor protection fund established by Congress is used to make payments and is financed entirely through monetary fines and sanctions paid to the SEC by securities law violators.  No money is taken or withheld from harmed investors to pay whistleblower awards.