CONTACT US

For any general inquiries, please fill in the following contact form:

Our websites never use cookies or other technologies such as pixel tags and web beacons. We only retain personal information when the contact section of our websites is filled. To proceed and get in touch with us through this format please read our Terms & Conditions, updated to be in line with the provisions of the GDPR, and tick this box to consent in us retaining the above information for contacting purposes only.

SUBMIT

Three SEC whistleblowers split $7 million award

Three SEC whistleblowers split $7 million award

The Securities and Exchange Commission Monday awarded more than $7 million to three whistleblowers who helped the agency stop a fraudulent investment scheme.

One whistleblower, an outsider, provided information that led to the start of the SEC’s investigation. The SEC awarded that whistleblower more than $4 million. 

Two other whistleblowers jointly provided more new information during the SEC’s investigation. That information "significantly contributed to the success of the SEC’s enforcement action," the agency said.  The SEC awarded those two whistleblowers more than $3 million to be split between them.

By law, the SEC protects the confidentiality of whistleblowers and doesn't disclose information that might reveal who they are. The SEC Monday released a redacted whistleblower award order (pdf).

The SEC has now awarded $149 million to 41 whistleblowers since the first award in 2012.

The biggest award was more than $30 million in 2014.

The agency made its second biggest award of $22 million in August 2016.

And in November 2016, the SEC awarded more than $20 million to a whistleblower.

Whistleblowers can be eligible for an award when they voluntarily provide the SEC with "original, timely, and credible information that leads to a successful enforcement action."

Awards can range from 10 percent to 30 percent of the money collected when the recovery is more than $1 million. 

Monday's award was the second of 2017. On January 6, the SEC awarded more than $5.5 million to a whistleblower who helped stop an ongoing fraud. In that case, the SEC said it made an exception for the whistleblower who didn't provide the information "in writing," as required by SEC rules.

The SEC received about 4,000 tips in the latest reporting year and more than 14,000 since the award program started. Tips have come from individuals in all 50 states and the District of Columbia and 95 foreign countries.

____

Richard L. Cassin is the publisher and editor of the FCPA Blog.

http://www.fcpablog.com/blog/2017/1/23/three-sec-whistleblowers-split-7-million-award.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+fcpablog%2FsLbh+%28The+FCPA+Blog%29%20/

MORE NEWS

Ed Sheeran paid more in tax last year than both Starbucks and Amazon

Ed Sheeran paid more in tax last year than both Starbucks and Amazon
He earned less than Starbucks and Amazon made in profits last year but Ed Sheeran paid more in tax than either company.Figures released this...

Europe’s biggest banks fined for money laundering

Europe’s biggest banks fined for money laundering
All five of the UK’s largest banks have been sanctioned for money laundering offences within the last decade.Almost all of Europe’s biggest ...

Ebay hit with £7m extra UK tax bill after a review by HMRC

Ebay hit with £7m extra UK tax bill after a review by HMRC
E-commerce auction site Ebay’s UK office paid out an additional £7m in owed corporate taxes last year, after the closure of a review by HM ...

Who's behind the blog

Who's behind the blog

SOCIAL MEDIA