SEC awards USD 600’000 to whistleblower
On 14 January 2021, the U.S. Securities Exchange Commission (hereinafter “SEC”) announced an award of nearly USD 600’000 to a whistleblower whose tip led to the success of an enforcement action. According to the SEC, the whistleblower substantially contributed to an open investigation by providing detailed and highly valuable information resulting in critical investigative leads.
The SEC further explained that it has awarded more than USD 738 million to 134 individuals since issuing its first award in 2012. All payments would have made out of an investor protection fund established by the U.S. Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money would have been taken or withheld from harmed investors to pay whistleblower awards. The SEC emphasised that it would protect the confidentiality of the whistleblowers and therefore would not disclose information that could reveal a whistleblower’s identity.
More information: https://www.sec.gov/news/press-release/2021-7