Whistle-Blower Collects $900K Award From SEC

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By Antoinette Gartrell

Dec. 9 — An unidentified insider has been awarded $900,000 for providing information that led to multiple successful Securities and Exchange Commission enforcement actions.

The award, announced Dec. 9 marks the second time the agency has paid out a whistle-blower this week.

To date, the program has awarded approximately $136 million to 37 individuals, the SEC said in a release. Enforcement actions from whistle-blower tips have resulted in more than $874 million in financial remedies over the life of the program, the agency said.

The SEC’s whistle-blower bounty program, created by the Dodd-Frank Act, grants financial awards of between 10 percent and 30 percent to qualified individuals whose tips result in sanctions totaling at least $1 million. The program has been popular—the SEC has received an increasing number of tips every year since the program was launched in 2011.

Award money isn’t taken or withheld from harmed investors, the agency said. Instead, payments are made from an investor protection fund established by Congress. The fund is financed through monetary sanctions paid to the commission by securities law violators.

The SEC is prohibited by federal law from identifying whistle-blower award recipients or the related cases.

To contact the reporter on this story: Antoinette Gartrell in Washington at agartrell@bna.com

To contact the editor responsible for this story: Phyllis Diamond at PDiamond@bna.com

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