The US Securities and Exchange Commission awarded more than $5 million to a whistleblower who the agency says helped it bring a successful enforcement action.
(Bloomberg) — The US Securities and Exchange Commission awarded more than $5 million to a whistleblower who the agency says helped it bring a successful enforcement action.
The person provided information and “substantial” assistance to an SEC investigation, Creola Kelly, the head of the regulator’s whistleblower office, said in a Friday statement. The tipster helped the commission identify witnesses and draft information requests, the regulator said.
Neither the related enforcement action, nor the identity of the whistleblower were disclosed, per agency policy. The program was established by the 2010 Dodd-Frank Act to give a financial incentive to tipsters.
Whistleblowers can receive between 10% to 30% of the amount collected through monetary penalties in successful enforcement cases where fines exceed more than $1 million. The SEC has paid out over $1 billion to those who helped the regulator since the program’s inception.
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