SEC whistleblower to receive $37M award

A whistleblower will be paid $37 million by the Securities and Exchange Commission (SEC) for providing original, credible information that led to a successful enforcement action.

The award, announced in a press release Wednesday, will be paid out through an investor protection fund that is financed through penalties paid to the SEC by securities law violators. Whistleblower awards consist of between 10 and 30 percent of money collected in an enforcement action when the sanctions exceed $1 million.

The SEC protects the confidentiality of all whistleblowers and does not link the award to a particular enforcement action, as mandated by the Dodd-Frank Act, which established the SEC’s whistleblower program.