The U.S. Securities and Exchange Commission (SEC) is paying more than US$18 million to a whistleblower who tipped the SEC off to misconduct that helped investors recover significant losses.
The SEC reported that the tipster in this case provided “significant information” that led to a regulatory examination, which resulted in an “important enforcement action.”
While the details of these cases are kept confidential, the commission noted that the whistleblower in this instance “repeatedly reported the problem internally before contacting the SEC.”
Additionally, the regulatory action helped save significant investor losses, the SEC said.
“Because of this whistleblower’s actions, harmed investors were able to recover millions of dollars in losses,” said Jane Norberg, chief of the SEC’s Office of the Whistleblower.
“This whistleblower stepped forward and helped the agency better protect Main Street investors.”
The SEC has now awarded over $448 million to 81 whistleblowers since introducing its program of paying for enforcement tips.