The U.S. Securities and Exchange Commission (SEC) said on Friday that it had given its largest-ever award—nearly $279 million—to a whistleblower whose information had assisted the regulator’s enforcement action.
In its statement, the regulator omitted to mention the relevant case.
The payout is far more than the $114 million it had given out in October 2020.
“As this award demonstrates, there is a significant incentive for whistleblowers to come forward with accurate information about potential securities law violations,” said Gurbir Grewal, director of the SEC’s Division of Enforcement, in a statement.
Whistleblower compensation is paid out of an investor protection fund that was established by Congress and is wholly funded by fines that violators of securities laws must pay to the SEC.
When the financial penalties are greater than $1 million, whistleblowers may get rewards that vary from 10% to 30% of the money collected. According to Creola Kelly, head of the SEC’s Office of the Whistleblower, “the whistleblower’s sustained assistance including multiple interviews and written submissions was critical to the success of these action
