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SEC Tipster Gets $18 Million for Helping Investors Recoup Losses

April 28, 2020, 6:27 PM

The U.S. Securities and Exchange Commission awarded $18 million to a whistle-blower whose information helped the agency bring an enforcement action that enabled harmed investors to recoup millions of dollars in losses.

The tipster repeatedly reported the problem internally before reaching out to the SEC, the regulator said in a Tuesday statement.

“This whistle-blower stepped forward and helped the agency better protect Main Street investors,” Jane Norberg, head of the SEC’s whistle-blower office, said in the statement.

The SEC didn’t provide information on the person’s identity or the company involved, citing federal law that protects confidentiality. The agency has paid more than $448 million to 81 individuals since issuing its first award in 2012.

Whistle-blowers 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% to 30% of the money collected in a case where sanctions exceed $1 million.

To contact the reporter on this story:
Matt Robinson in New York at mrobinson55@bloomberg.net

To contact the editors responsible for this story:
Jesse Westbrook at jwestbrook1@bloomberg.net

Gregory Mott

© 2020 Bloomberg L.P. All rights reserved. Used with permission.