Two whistleblowers have
been awarded more than $6 million by the US Securities and Exchange Commission
(SEC).
The SEC on Friday disclosed that the whistleblowers provided critical information and assistance in its
investigation on two separate financial misconducts.
The US financial
markets supervisor said it issued an order for the award of more than $3
million to each whistleblower.
However, in accordance
with the Dodd-Frank Act, the SEC concealed the identity of the whistleblowers to
protect them.
The agency explained
that the first whistleblower alerted the body when they were solicited to
invest in a product they believed was being misrepresented.
SEC said the whistleblower’s alert prompted the opening of an investigation into the issue.
Subsequently, the said
whistleblower continued to cooperate with the regulatory authority’s
enforcement staff, SEC said.
The second whistleblower is an insider who submitted a detailed scoop to the
agency after initially raising the alarm internally on the matter, SEC explained.
The scoop aided the
agency in opening an investigation into the matter, the securities markets supervisor pointed out.
Furthermore, the second
whistleblower met with enforcement staff of the agency at various times during
the course of the investigation to provide more information on the issue.
$1.3 Billion in
Whistleblowers’ Awards
Creola Kelly, Chief of
the SEC’s Office of the Whistleblower, noted that both insiders and outsiders
are very instrumental to the watchdog’s ability to sniff out misconducts and protect
investors.
“When confronted
with potential wrongdoing, today’s whistleblowers refused to look the other
way, but instead, chose to do the right thing by reporting it to the SEC,”
Kelly explained.
Since 2012 when the
first award was issued, the SEC has awarded approximately $1.3 billion
to 276 individuals.
Whistleblowers are
rewarded between 10-30% of money collected when the recuperated fund is more
than $1 million.
The supervisory
authority further explained that payments to whistleblowers are made from an
investor protection fund instituted by the United States Congress.
This fund, it added, is
financed wholly from monetary sanctions paid to the agency by violators of the
US securities laws.
“No money has been
taken or withheld from harmed investors to pay whistleblower awards,” SEC said
in the statement.
Two whistleblowers have
been awarded more than $6 million by the US Securities and Exchange Commission
(SEC).
The SEC on Friday disclosed that the whistleblowers provided critical information and assistance in its
investigation on two separate financial misconducts.
The US financial
markets supervisor said it issued an order for the award of more than $3
million to each whistleblower.
However, in accordance
with the Dodd-Frank Act, the SEC concealed the identity of the whistleblowers to
protect them.
The agency explained
that the first whistleblower alerted the body when they were solicited to
invest in a product they believed was being misrepresented.
SEC said the whistleblower’s alert prompted the opening of an investigation into the issue.
Subsequently, the said
whistleblower continued to cooperate with the regulatory authority’s
enforcement staff, SEC said.
The second whistleblower is an insider who submitted a detailed scoop to the
agency after initially raising the alarm internally on the matter, SEC explained.
The scoop aided the
agency in opening an investigation into the matter, the securities markets supervisor pointed out.
Furthermore, the second
whistleblower met with enforcement staff of the agency at various times during
the course of the investigation to provide more information on the issue.
$1.3 Billion in
Whistleblowers’ Awards
Creola Kelly, Chief of
the SEC’s Office of the Whistleblower, noted that both insiders and outsiders
are very instrumental to the watchdog’s ability to sniff out misconducts and protect
investors.
“When confronted
with potential wrongdoing, today’s whistleblowers refused to look the other
way, but instead, chose to do the right thing by reporting it to the SEC,”
Kelly explained.
Since 2012 when the
first award was issued, the SEC has awarded approximately $1.3 billion
to 276 individuals.
Whistleblowers are
rewarded between 10-30% of money collected when the recuperated fund is more
than $1 million.
The supervisory
authority further explained that payments to whistleblowers are made from an
investor protection fund instituted by the United States Congress.
This fund, it added, is
financed wholly from monetary sanctions paid to the agency by violators of the
US securities laws.
“No money has been
taken or withheld from harmed investors to pay whistleblower awards,” SEC said
in the statement.
