The U.S. Securities and Exchange Commission awarded $110 million to a tipster whose information resulted in enforcement actions, bringing total payments under the agency\u2019s whistle-blower program to more than $1 billion, Bloomberg News reported. The tipster\u2019s award, the second-largest ever, includes $40 million from the SEC and $70 million from a related action brought by another agency.<\/p>\n\n\n\n
Under the SEC\u2019s whistle-blower program, tipsters can be paid for information that prompts sanctions by another agency. \u201cToday\u2019s announcement underscores the important role that whistle-blowers play in helping the SEC detect, investigate and prosecute potential violations of the securities laws,\u201d SEC Chair Gary Gensler said in the statement. \u201cThe assistance that whistle-blowers provide is crucial to the SEC\u2019s ability to enforce the rules of the road for our capital markets.\u201d The SEC has made disbursements to 207 tipsters since issuing its first award in 2012. Individuals are eligible for payments ranging from 10% to 30% of the fines collected in enforcement cases where penalties exceed $1 million. Funds used to pay tipsters don\u2019t come out of disgorgement, the portion of a sanction that\u2019s supposed to be returned to harmed investors.<\/p>\n","protected":false},"excerpt":{"rendered":"
The U.S. Securities and Exchange Commission awarded $110 million to a tipster whose information resulted in enforcement actions, bringing total payments under the agency\u2019s whistle-blower program to more than $1 billion, Bloomberg News reported. The tipster\u2019s award, the second-largest ever, … Continue reading