The U.S. Securities and Exchange Commission (SEC) has awarded the largest reward ever offered to a whistleblower, $279 million, for providing valuable information that helped regulators in law enforcement, Reuters reported.
The regulator does not disclose which case it is about.
The award is more than double the $114 million paid out in October 2020.
“As this award demonstrates, there is a significant incentive for whistleblowers to provide accurate information about potential securities law violations,” Gurbir Grewal, director of the SEC’s Division of Enforcement, said in a statement.
Whistleblower payments are made out of an investor protection fund that was established by Congress and is funded entirely by fines paid to the SEC by those who violate securities laws.
Whistleblower rewards can range from 10% to 30% of the money collected if monetary penalties exceed $1 million.
“Continued whistleblower assistance, including numerous interviews and written statements, was essential to the success of these actions,” said Creola Kelly, chief of the SEC’s whistleblower division. (News.ro)
Source: Hot News
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.