A whistleblower was awarded nearly $279 million on Friday by the Securities and Exchange Commission, the largest amount ever given to a whistleblower.
The record amount dwarfs the next-highest whistleblower award, a $114 million sum given in 2020.
The SEC, which protects investors and enforces securities law, did not disclose the name of the whistleblower, the nature of the tip, the company or companies involved nor any other information about the case. An order linked to the SEC announcement of the award was heavily redacted.
Whistleblower claims made by two other people were denied in the SEC order; the regulator wrote that neither claimant provided information that contributed to the enforcement action.
Whistleblowers receive from 10% to 30% of the money seized or taken via penalty through SEC investigations if the overall amount is more than $1 million.
The SEC said the investigation had started before the whistleblower stepped forward, but the person provided information that widened the scope of the misconduct being examined. The informant’s help included written submissions and interviews.
“The size of today’s award — the highest in our program’s history — not only incentivizes whistleblowers to come forward with accurate information about potential securities law violations, but also reflects the tremendous success of our whistleblower program,” SEC Division of Enforcement Director Gurbir Grewal said.
• Brad Matthews can be reached at bmatthews@washingtontimes.com.
Please read our comment policy before commenting.