SEC Whistleblower Program Awards Anonymous Tipster

The Securities & Exchange Commission (SEC) announced that it awarded $17 million to a former company employee whose tip was instrumental in the SEC’s investigation and subsequent enforcement proceeding. No details of the enforcement have been made public.

The award is the second largest payout ever under the SEC’s relatively new whistleblower program. The terms of the program provide anonymity for would-be tipsters to encourage reporting. Based on awards which range from 10-30% of the sanctions the agency secures, it appears that the action brought in between $56 million and $170 million.

This award continues a recent trend of company insiders who have been rewarded for alerting the SEC about potential securities law violations. In the past month alone, $26 million has been awarded to five anonymous tipsters who blew the whistle on companies that were violating securities laws.

Any money paid to tipsters comes from the monetary sanctions of securities law violators, not from harmed investors.

Call a Los Angeles Whistleblower Attorney Today

If you have information that your company is violating securities law, you may be eligible to receive an award if your information leads to sanctions, and your information will remain anonymous.

Contact an experienced Los Angeles whistleblower attorney today for a consultation to discuss your rights and options.

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