(Bloomberg) -- The U.S. Securities and Exchange Commission will pay $10 million to a whistle-blower whose “persistent efforts” to expose financial misconduct helped the agency bring a successful enforcement action.
The reward recognizes the tipster's “extensive and ongoing assistance to the investigative team over the course of the investigation, including identifying witnesses and helping staff understand complex fact patterns and issues related to the matters under investigation,” the SEC said in a statement Monday.
The person helped the SEC devise its investigative plan and craft its initial document requests, even while suffering hardships, according to the statement.
Neither the whistle-blower nor the company involved in the misconduct were named by the SEC, in keeping with the federal government's policy of withholding information that could reveal a tipster's identity.
Whistle-blowers are eligible for awards ranging from 10% to 30% of the amount of money collected in enforcement cases where penalties exceed $1 million. The funds aren't taken from the money due to be returned to harmed investors. The SEC has paid more than $520 million to 94 whistle-blowers since its first reward in 2012.
©2020 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
