Kyle Bass Wins Reversal of SEC Move to Deny Whistleblower Award

The SEC acknowledged that activist investor Kyle Bass should have been paid as a whistleblower two years ago, apparently the first time it has overturned a decision to deny an award in response to a federal court challenge.

The Securities and Exchange Commission’s new ruling, issued without any notice to the federal court hearing Bass’s appeal, awarded the Texas billionaire $400,000 for his help in exposing fraud at a Dallas land developer. Bass said he deserved $2.5 million. A second informant on the same case was given more than $2 million.

The commission initially ruled Bass wasn’t entitled to ...