SEC awards top 10 whistleblower award at $ 36 million | Item


The person who received the bounty served as a key informant in preparing for successful enforcement actions by the SEC and another federal agency. The whistleblower “met with application staff on several occasions, provided information that enabled application staff and other agencies to identify and request key documents, and provided crucial information regarding the illegal program, “the SEC Explain.

The total number of slots awarded is the eighth highest announced by the SEC since distributing its first payment in 2012. Of the top 10, four were announced this fiscal year, including the agency’s first two bonuses exceeding 100 million. of dollars.

Yet the total of $ 36 million was not the maximum award applicable in this case, as the plaintiff “unreasonably delayed his report to the Commission for more than five years” and “was guilty in the scheme under underlying, ”the SEC said. The agency does not disclose the specific percentage applied to compensation – only that it is 10 to 30 percent of the money raised when fines exceed $ 1 million – but in this case, it said that the payment “strikes the appropriate balance between the significant contributions of Plaintiff 1 to the success of the Covered Action and the unreasonable delay in finding and level of culpability of Plaintiff 1.

Two other claimants were denied portions of the compensation for failing to provide information which significantly contributed to the success of the agencies’ enforcement actions.

The SEC has awarded about $ 1.1 billion to 214 people since 2012. About half of that total came from this fiscal year, which ends Sept. 30. All payments are made from an investor protection fund established by Congress that is fully funded by monetary penalties paid. to the SEC by violators of securities laws.

The SEC does not identify whistleblowers or disclose information that may reveal the identity of a whistleblower.


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