Rs 2,280 cr! SEC’s new record in rewarding whistleblower

WASHINGTON: The US Securities and Exchange Commission has paid out its largest-ever award to a whistleblower, almost $279mn (Rs 2,280 crore), the regulator announced.

In a heavily redacted SEC order dated May 5, the agency did not name the person who was paid the reward, nor did it say which enforcement actions resulted in the payment, a policy designed to protect whistleblowers who want to remain anonymous.

The award is more than double the $114 million that it had issued in October 2020.

“As this award shows, 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.

Payments to whistleblowers are made out of an investor protection fund that was established by Congress and financed entirely through monetary sanctions paid to the SEC by securities law violators.

Awards to whistleblowers range from 10% to 30% of money collected when monetary sanctions exceed $1 million.

“The whistleblower’s sustained assistance including multiple interviews and written submissions was critical to success of these actions,” said Creola Kelly, chief of the SEC’s Office of the Whistleblower.