2 whistleblowers aiding SEC case awarded $50 million
One of the informants will receive the third-biggest payout in the history of the SEC’s whistleblower program.
(Bloomberg) –The Securities and Exchange Commission agreed to pay a total of $50 million to a pair of whistleblowers who provided information that helped Wall Street’s main regulator bring a successful enforcement case.
One of the informants will get $37 million, the third-biggest payout in the history of the SEC’s whistleblower program, the agency said in a statement Tuesday. The SEC didn’t name the company involved or the people getting the awards, but said the two provided high-quality assistance.
“Whistleblowers like those being awarded today may be the source of ‘smoking gun’ evidence and indispensable assistance that strengthens the agency’s ability to protect investors and the capital markets,” Jane Norberg, chief of the SEC’s whistleblower office, said in the statement.
Tipsters are eligible for payouts if they voluntarily provide the SEC with unique information that leads to a successful enforcement action. Compensation can range from 10 percent to 30 percent of the money collected in a case where sanctions exceed $1 million. The SEC has paid out about $376 million since issuing its first award in 2012.
READ MORE:
SEC settles with 79 RIAs under share-class disclosure initiative
SEC sets top goal for next 4 years: Protecting Main Street investors
Copyright 2019 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.