(This is an Update to the post of September 10, 2013.)
The Securities and Exchange Commission announced yesterday that it has made the largest whistleblower award in its history (more than $14 million) to an unidentified whistleblower who “provided original information and assistance that allowed the SEC to investigate an enforcement matter more quickly than otherwise would have been possible. Less than six months after receiving the whistleblower’s tip, the SEC was able to bring an enforcement action against the perpetrators and secure investor funds.”
The SEC is required by law to keep the identity of the whistleblower a secret.
The whistleblower program rewards high-quality original information that results in an SEC enforcement action with sanctions exceeding $1 million, and awards can range from 10 percent to 30 percent of the money collected in a case.